Manuka Resources (ASX:MKR) to raise $5m for its Mt Boppy and Wonawinta projects

• Manuka Resources (MKR) receives firm commitments to raise $5 million through a placement for its Mt Boppy and Wonawinta projects
• The company will issue about 16.7 million new shares at an issue price of 30 cents each
• This represents an 11 per cent discount to the last closing price and an 8.2 per cent discount to the 10-day volume weighted average price
• The funds will be used for a smooth transition from Mt Boppy gold production to Wonawinta silver production, ongoing exploration drilling and general working capital
• Shares are trading 2.94 per cent lower today at 33 cents each

Manuka Resources (MKR) has received firm commitments to raise $5 million through a placement for its Mt Boppy and Wonawinta projects in central west New South Wales.

The company will issue about 16.7 million new shares at an issue price of 30 cents each.

This represent an 11 per cent discount to the last closing price and an 8.2 per cent discount to the 10-day volume weighted average price.

The support for the placement has come from a mix of new domestic and international institutional investors as well as existing shareholders.

At completion of the placement, Manuka’s pro forma cash balance is about $8.3 million.

The funds will be used for a smooth transition from Mt Boppy gold production to Wonawinta silver production, ongoing exploration drilling, and general working capital.

The Mt Boppy project is nearing completion of phase 1 gold production and awaiting drill results from its exploration program conducted between November and this month, before finalising mining and production plans for phase 2. The Wonawinta processing plant has a nameplate capacity of 850,000 tonnes per year, and will be commissioned for silver production in March 2022.

Executive Chairman Dennis Karp said the demand for the placement was strong.

“This funding, combined with anticipated cashflows from Wonawinta silver production which commences in March, provides a strong footing for the company to continue its
exploration programs and plans to relocate the recently acquired 1Mtpa flotation circuit
to Wonawinta,” he said.

“The company has an aggressive exploration program underway with the current drill program nearing completion at Mt Boppy and our Canbelego tenements, and our focus then shifting to exploration targets on the western flank of the Cobar Basin.”

Shares were trading 2.94 per cent lower at 33 cents at 1:39 pm AEDT.