Welcome to the exciting announcement from Manuka Resources Limited, where the Company has secured firm commitments from institutional and other exempt investors for up to $8 million in new shares via a Share Placement. This funding will be instrumental in moving the Mt Boppy Gold Mine towards production by 2024.
Key Points:
- Positive investor response with $8 million raised to kickstart Mt Boppy Gold Mine production.
- Initial 5-year Mine Plan for Mt Boppy projects forecasted EBITDA of up to $19 million per year.
- Allocation of funds to establish on-site processing facility for gold recovery from oxidized ore.
- Exploration potential at Mt Boppy and neighboring tenements to increase annual gold production.
- Future cash flows to support Wonawinta Silver Mine restart in 2025.
- Upcoming release of updated Reserve Statement for Wonawinta Silver Mine.
Manuka Resources Limited is strategically focused on gold and silver production in the Cobar Basin, with a clear plan for sustainable growth from its existing assets. Recent drilling programs have bolstered confidence in the Mt Boppy Resource, with a promising Mine Plan set to deliver substantial EBITDA in the coming years. The funds raised will enable the construction of a state-of-the-art processing facility at Mt Boppy, with the first gold production expected by the end of 2024.
Comments from Dennis Karp, Executive Chairman of Manuka:
“We are thrilled to announce this significant capital raise, marking the beginning of an exciting phase for the Company. Our focus on establishing on-site processing capacity at Mt Boppy aligns perfectly with our growth strategy and positions us well for success in the current market environment.”
The Company aims to restart silver production at Wonawinta in 2025, leveraging the revenue generated from Mt Boppy. With substantial silver reserves and a dedicated processing plant in place, Wonawinta has the potential to reclaim its status as a key player in the silver mining sector.
Utilization of Placement Funds:
Table 1: Use of Placement Proceeds
Details of the Placement:
The Placement involves the issuance of approximately 133.3 million New Shares at a price of $0.06 per share, representing a discount to the recent market price. Each New Share will come with a free accompanying Option, allowing investors to participate in the Company’s future growth at a predetermined price.
Read the full ASX Release here
This article features content from Manuka Resources Limited and is intended for publication on Investing News Australia. It does not constitute financial advice, and readers are encouraged to conduct their own research before making investment decisions.