Manuka Resources (ASX:MKR) has reached an agreement to extend an existing debt facility provided by TransAsia Private Capital.
The $25.87 million market capitalisation company says TransAsia confirms that it does not intend calling on the funds and will work with Manuka to either extend the term of the existing facility, while it continues to secure a refinancing, or adopt an alternative debt financing solution.
This ensures Manuka will continue its full mining and commercial operations.
Manuka adds that it is currently advancing discussions with other debt providers on a debt refinancing, with a focus on an extended tenor to any new facility.
The company expects to be able to announce revised debt facility arrangements during the December quarter this year.
“Once again we wish to note our appreciation of the ongoing support provided by TransAsia“
Commenting on the extended debt facility, Manuka Resources Executive Chairman Dennis Karp says: “Once again we wish to note our appreciation of the ongoing support provided by TransAsia.
They have been an outstanding financing partner for Manuka from our commencement and continue to strongly back our growth strategy and the commercial direction we are pursuing.”
Manuka Resources is an Australian mining and exploration company, focused on its key assets in the Cobar Basin of New South Wales, Australia. As of 30 June 2023, the company had $266,000 cash and cash equivalents at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Manuka Resources