M&A, ManhattanCorporation (ASX:MHC) was going to acquire TTR with an effective buyprice of $36M AUD (2018), however plans fell through 5 months laterin June 2018. MKR is set to acquire TTR for up to $27M AUD, assumingMKR SP stays @0.15. Around 68% of the original purchase price adjustedfor inflation. Cents on the dollar considering TTR have already sunkover $80M NZD.
TTR as a company,TTR started prospecting in 2008 and are currently 6 years behind atimeline for commencing operation presented in 2014. TTR a privatelyowned company for 15 years now have had a rough start (or lack thereof) due to first being denied consent to act on their permit andthen once granted, the decision appealed (13,000 submissions) in thecourts. The mineral deposit/s look sound with an estimated 55-57% Feconcentration and estimated cost of extraction @ $28 USD/t.
EPA, Insummary TTR need consents along with their already gained permits.TTR first applied for consents in 2013 which were subsequentlydeclined. TTRapplied for and was granted consents in 2016 only to be appealed atNZ High and Supreme Courts.The court ruling was for reconsideration bythe EPA's committee, which isstill pending a decision.Ultimatelythis is the boom or bust, the future of this company is almostcompletely determined by this pending decision. Atthis point in time, no information has been brought to light how MKRwill meet Treaty of Waitangi obligations.
NZ GOV,presentan unknown threat to the company. TheProhibition on Seabed Mining Legislation Amendment Bill has recentlybeen proposed and, while being unlikely to pass, still presentsfurther risk to operations. If Labour need supportfrom the TePāti Māori partynext election, thisbill may stick.
iwiand environmentalists are responsible for appealing the EPA decision.The Kaikoura harbour and Whakatane river have been allowed to dredgefor other projects ($), it is not entirely unlikely that the iwi maywithdraw appeals if they stand to benefit (directly) from theoperation.
New BoardMembers, Quite possibly thebest news to come of this merger is the addition of two new board members, Alan Eggers and John Seton. Alan Eggers of Summit Resources,Manhattan Corporation (previous attempted M&A) and John Seton ofMHC, Besra Gold, Olympus Pacific Minerals and IT Capital will providea wide range of experience to the current board.
This is quite alarge roll of the dice and a great deviation from the companiesoriginal mission statement. All things considered, if permits aregranted MKR will attract a new demographic of investors and has highgrowth potential.
EPA will make theirjudgement early next year and until then, I will be watching closely.
TL;DR Red tape and lots of it. Very high risk/reward potential.
Did Alan Eggers just want to buy an Au/Ag miner? Doesn't make much sense to me from the side of MKR.
DYOR/DD 
