Manuka Faces Refinancing Deadline Amid Silver Reserve Milestone and NZ Regulatory Push

Maiden Silver Reserve Marks a Milestone

Manuka Resources Limited (ASX: MKR) has announced a significant milestone with the release of a maiden silver ore reserve for its Wonawinta Silver Mine in New South Wales. The reserve comprises 4.8 million tonnes at an impressive grade of 53.8 grams per tonne silver, containing 8.4 million ounces of silver. Notably, this reserve is based solely on shallow oxide material less than 40 metres deep, underscoring the potential for a rapid and cost-effective restart of mining operations.

Wonawinta remains Australia's only primary silver reserve with all mining approvals current and a fully constructed processing plant, which has been maintained in excellent condition. The company’s recent metallurgical innovations have enhanced plant capacity beyond its nameplate 850,000 tonnes per annum to over 1 million tonnes, positioning it well to capitalize on the strengthening silver price environment.

Strengthened Financial Position and Refinancing Efforts

During the December quarter, Manuka successfully raised A$3.4 million through convertible notes issued at a premium to the prevailing share price, substantially bolstering its balance sheet. This capital injection supports ongoing project development, including A$1.4 million earmarked for Trans-Tasman Resources Ltd’s (TTR) Fast Track Application in New Zealand.

The company has also secured an extension on its senior secured debt facility with TransAsia Private Capital, pushing the repayment date to 31 May 2025. Manuka is actively pursuing refinancing options to ensure financial flexibility as it advances its projects.

Advancing the Taranaki VTM Iron Sands Project Under New Legislation

Manuka’s wholly owned subsidiary, TTR, is progressing its Taranaki VTM Iron Sands Project offshore in New Zealand’s South Taranaki Bight. The project boasts a substantial 3.2 billion tonne vanadiferous titanomagnetite resource, ranking it among the largest vanadium projects globally. The New Zealand government’s passage of the Fast Track Approvals Act 2024 is a game-changer, providing a streamlined pathway for major resource projects like TTR’s to secure final development approvals.

TTR is preparing to lodge its application for marine and discharge consents under this new regime, with an expert panel review anticipated in early 2025. The inclusion of vanadium and titanium on New Zealand’s newly released Critical Minerals List further enhances the strategic importance of the project, aligning with government ambitions to double mineral export values to $3 billion by 2035.

Progress at Mt Boppy Gold Project

Manuka continues to advance metallurgical test work at its 100% owned Mt Boppy gold project, focusing on establishing a gold processing facility to restart production. The initial mine plan targets approximately 3.5 years of operation by reprocessing rock dumps and tailings. Ongoing test work aims to refine the process flow sheet and support financing efforts, which are linked to the broader refinancing strategy.

Outlook and Strategic Positioning

With a maiden silver reserve secured, a strengthened balance sheet, and regulatory tailwinds in New Zealand, Manuka Resources is well positioned to transition from care and maintenance to active production. The company’s dual focus on precious metals in Australia and critical minerals offshore New Zealand aligns with evolving market demands and government priorities, potentially unlocking significant shareholder value.