Manuka Resources raises $2.4 million in private placement

Manuka Resources (ASX:MKR) has successfully completed $2.4 million private placement of new fully paid ordinary shares in the company to professional and sophisticated investors. 

The placement shares were issued on 17 April 2023 in 2 tranches, with an issue price of about $0.0613 per share for 17.9 million of the placement shares, as well as $0.0645 per share for about 20.155 million of the placement shares. The pricing of the placement shares was based on a 10-day VWAP with no discount. 

Manuka reports that participants in the placement have been offered one free option for every 2 placement shares issued under the placement, with an exercise price of $0.13 per share and an expiry date of 31 December 2023. 

the placement has been ‘greatly’ supported by a handful of professional and sophisticated investors, with the majority being existing shareholders

The company states that the placement has been ‘greatly’ supported by a handful of professional and sophisticated investors, with the majority being existing shareholders. This support has resulted in the issue of more than 38 million fully paid ordinary shares.

Manuka reports the settlement of the placement has taken place and placement shares were issued yesterday (17 April 2023). In addition, the company adds the funds raised from the placement will be used towards general working capital and expenditure associated with the transition to gold production. 

Manuka Resources is an Australian mining and exploration company, with key assets located in the Cobar Basin, Central West New South Wales. The company wholly owns 2 fully permitted mining projects in the Cobar Basin, including the Mt Boppy Gold Mine and Wonawinta Silver Project.  

Images: Manuka Resources Ltd
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Written By Aaliyah Rogan
Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.