Manuka Resources (ASX:MKR) has released a 10-year production plan across its silver and gold assets in the Cobar Basin of New South Wales, with a restart plan for the Wonawinta processing plant on track.
The company has received a binding offer for a new debt facility from an Australian non-bank lender to refinance its existing senior debt facility, as well as support the restart of the plant.
Manuka, which has a market capitalization of $55.4 million, intends to finalise negotiations of the new debt facility and execute binding documents over the coming quarter, while restart production at Wonawinta will begin in Q1 2026.
The existing facility of US$12.41 million has been assigned from TransAsia Private Capital to a unit trust comprising existing shareholders. The maturity date has also been extended by 6 months to March 2026.
BurnVoir Corporate Finance is advising the company on the restart financing for Wonawinta.
The capital expenditure required to bring Wonawinta back into production is estimated to be $18.9 million.
At an assumed silver price of $50 per ounce and average all-in sustaining cost of $35 per ounce, the project delivers an average earnings before interest, tax, depreciation and amortisation of $22 per year at an internal rate of return of 190% and net present value of $101 million.
The Wonawinta deposit is open along strike and at depth, with previous drilling by the company intersecting base metals sulphides down dip.
Onsite infrastructure at Wonawinta includes a 1 million tonnes per year processing plant, camp accommodation, airstrip, administration offices and tailings storage facility, allowing for fast-tracked production.
Further, Manuka has received approval for a secondary listing on the NZX Main Board Market. Shares will begin trading on the NZX at 7am AEST on 29 September under the same ticker code.
Manuka Resources is a diversified mineral explorer focused on gold and silver in the Cobar Basin, as well as iron, vanadium, and titanium in New Zealand.
Gold prices steadied around US$3,750 per ounce yesterday, holding near record highs set earlier this week, as reported by Trading Economics. The precious metal’s price has risen 10.37% over the past month, and is up 40.16% compared to the same time last year, as reported by Trading Economics.
Silver traded above US$44 per ounce, near a 14-year high, as firmer industrial offtake and tighter physical availability outweighed stronger US macro data that lifted yields and the dollar, according to Trading Economics.
Write to Aaliyah Rogan at Mining.com.au
Images: Manuka Resources
