Manuka Resources (ASX:MKR) is raising $1.53 million through an additional placement following the close of a $7.97 million underwritten entitlement offer to fund activity at its Wonawinta processing plant in New South Wales.
The company received applications to raise $1.08 million, issuing a total of 25.19 million shares before costs through the entitlement offer.
The remaining $6.88 million will be sourced from sub-underwriters, with a total of 160.05 million shares on offer.
As reported by Mining.com.au, the company intends to use funds raised to advance activities involved in restarting its Wonawinta processing plant and pre-production costs, as well as repaying owed debt.
In conjunction with the entitlement offer, Manuka will issue an additional 26.53 million shares to sub-underwriters with another 9.09 million shares to creditors for the $1.53 million placement.
Shares are deemed at an issue price of $0.043 per share.
Lead managers and sub-underwriters will be eligible to receive an additional 10.96 million shares upon completion of the entitlement offer for satisfying underwriting fees.
Sub-underwriters will receive 20 million options each, which can be transferred into shares at an exercise price of $0.10 prior to the three year anniversary of issue.
Manuka Resources is a gold and silver explorer focused on its assets located in the Cobar Basin region of New South Wales
Write to Maddison Elliott at Mining.com.au
Images: Manuka Resources
