Manuka Resources (ASX:MKR) has received firm commitments for a $14.5 million placement to complete the Wonawinta silver de-slime circuit and fund its production ramp-up.
The company will issue approximately 207 million shares at $0.07 each to institutional, sophisticated, and professional investors.
The placement price represents a 10.3% discount to Manuka’s closing price on 2 September and a 20.1% discount to its five-day volume-weighted average price.
Manuka has allocated $8.5 million to completing and commissioning the de-slime circuit, $5.25 million to office, camp, and working capital, and $750,000 to offer costs.
The additional funding requirement follows higher freight, installation, and construction costs, together with an approximately three-month extension to the original production timetable.
Gold processing has recommenced at Manuka’s wholly owned Wonawinta processing facility following an extensive recommissioning program. The plant is initially treating gold-bearing ore from the Mt Boppy Gold Mine.
The company says it is targeting its first gold sales by the end of September. Construction of the Wonawinta crushing and de-slime circuits is scheduled for completion in the December quarter, followed by commissioning in December and first silver revenue in January 2027.
Executive Chairman Dennis Karp says Manuka’s immediate focus is ramping up gold production while completing the remaining silver circuit work.
“This allows us to maximise near-term gold production before introducing silver, with first silver revenues targeted for January 2027,” Karp says.
Manuka says it also plans to raise up to $1 million through a share purchase plan for eligible Australian and New Zealand shareholders. Investors may subscribe for up to $30,000 of shares at the same $0.07 placement price.
Placement settlement is scheduled for 10 September, with allotment on 11 September.
Bell Potter Securities, part of Bell Financial Group (ASX:BFG), acted as lead manager.
Manuka Resources owns the Wonawinta Silver and Base Metals Project and Mt Boppy Gold Project in New South Wales’ Cobar Basin. Its regional portfolio also includes the Pipeline Ridge Gold Project, less than 30km south of Mt Boppy.
Write to France Pinzon at Mining.com.au
Images: Manuka Resources
