Manuka Resources (ASX:MKR) has executed a non-binding term sheet with mining and natural resources investor and financier Nebari Natural Resources Credit Fund II.
Under the term sheet, Nebari will provide a four-year senior secured loan facility of up to US$22.5 million. Together with the recent $15 million capital raising, the company says the funds available from the facility will ensure it is fully funded through to the production of silver at its Wonawinta Silver Mine and Plant, which is targeting first silver production in Q2 2026.
The Nabari facility will also enable it to repay a portion of existing debt.
As reported by Mining.com.au, Manuka recently conducted a $15 million capital raise to reduce future debt burden that may arise from the Wonawinta restart.
Nebari has provided initial credit-approved terms for the facility, final credit approval, and funding under the facilityis contingent upon a range of conventional conditions precedent including the parties entry into long-form transaction documentation and the completion of technical, commercial, and legal due-diligence.
Manuka Executive Chairman Dennis Karp says the timing of the facility is ideal, as silver continues its strong move ahead and Manuka is on the cusp of once again becoming the largest primary producer of silver in Australia.
Write to Adam Orlando at Mining.com.au
Images: Manuka
