- Manuka Resources (MKR) completes its institutional placement, raising $4.1 million for its exploration and resource development activities
- The placement will issue around 39 million new shares at 10.5 cents, a 19.2 per cent discount to the company’s last closing price on December 7
- Placement participants will also receive one free option for every two placement shares subscribed with an exercise price of 17 cents a share, expiring on December 16, 2025
- Funds raised will specifically go towards the Cobar Basin, Mt Boppy and Wonawinta projects in New South Wales, amongst other smaller things
- Shares in Manuka ended the day down 11.5 per cent, trading at 11.5 cents at market close
Manuka Resources (MKR) has completed its institutional placement, raising $4.1 million for its exploration and resource development activities.
The placement will issue around 39 million new shares at 10.5 cents, a 19.2 per cent discount to the company’s last closing price on December 7.
Placement participants will also receive one free option for every two placement shares subscribed for with an exercise price of 17 cents a share, expiring on December 16, 2025.
Funds raised will go towards exploration activities at the Cobar Basin in New South Wales.
On a smaller scale, funds will also go towards resource devleopment activities at Mt Boppy and a silver deportment pilot study at Wonawinta in New South Wales, among other things.
Executive Chairman Dennis Karp said the equity raise is conducted at a “very exciting time” for Manuka.
“Recently, we have materially advanced the recommencement of silver production at Wonawinta, continued to develop a plan around Mt Boppy resource development, and completed the acquisition of TTR, a project with potential to be at the forefront of the green economy,” Mr Karp said.
“With momentum building in both the price of silver and at our operations, we believe that this is the right time to recommence open-pit mining of silver at Wonawinta and to step up Cobar Basin exploration activity as we look to further increase our resource base and take advantage of our material regional processing capacity.”
The company had previously raised $5 million in February its Mt Boppy and Wonawinta projects in central west NSW.
Settlement is expected to occur on December 14 and allotment on December 15.
Shares in Manuka were down 11.5 per cent, trading at 11.5 cents at market close.