Manuka’s A$8M Raise Hinges on Production Restart and Regulatory Approvals
Manuka Resources has launched a fully underwritten A$8 million entitlement offer to fund the restart of its Wonawinta processing plant and advance its 10-year Cobar Basin Production Plan, targeting silver and gold output by early 2026.
- Fully underwritten entitlement offer raising approximately A$8 million
- Offer price set at A$0.043 per new share, a 2.5% discount to last close
- Funds allocated to plant restart, production plan initiation, debt repayment, and regulatory progress
- Production restart targeted for early Q1 2026
- Underwriting supported by Claymore Capital and sub-underwriters including Antanas Guoga
Capital Raise to Drive Production Restart
Manuka Resources Limited (ASX, MKR) has announced a fully underwritten entitlement offer aiming to raise approximately A$8 million. The capital raise is a strategic move to fund the restart of the Wonawinta processing plant and to kick off the company’s ambitious 10-year production plan in the Cobar Basin. The offer price of A$0.043 per new share represents a modest 2.5% discount to the recent closing price, reflecting confidence in the company’s near-term prospects.
Backing from Established Investors
The entitlement offer is fully underwritten by Claymore Capital, with significant sub-underwriting commitments from Lithuanian-Australian businessman Antanas Guoga and another investor client of the lead manager. This underwriting structure provides a safety net ensuring the full A$8 million is raised, regardless of shareholder uptake. Both sub-underwriters have a history with Manuka, underscoring their belief in the company’s asset quality and operational plans.
Allocation of Funds and Strategic Priorities
Funds raised will be directed primarily towards progressing the restart of the Wonawinta processing plant, a key asset in Manuka’s portfolio, and initiating the Cobar Basin Production Plan. Additionally, a portion of the proceeds will be used to repay existing debt, which should strengthen the company’s balance sheet and reduce financial risk. The company also plans to continue advancing its Trans-Tasman Resources project through New Zealand’s fast-track approval process, highlighting a multi-pronged growth strategy.
Production Timeline and Market Implications
Manuka is targeting the recommencement of silver and gold production in early Q1 2026, a timeline that, if met, could mark a turning point for the company’s operational and financial trajectory. The restart of production is expected to generate cash flow that will support ongoing operations and potentially fund further growth initiatives. Investors will be watching closely to see how effectively the company executes this plan and manages the associated operational risks.
Shareholder Participation and Offer Details
The entitlement offer is non-renounceable and open to shareholders registered in Australia and New Zealand as of 17 July 2025. Eligible shareholders can subscribe for two new shares for every nine shares held, with the option to apply for additional shares beyond their entitlement. The offer opens on 22 July and closes on 31 July 2025, with new shares expected to commence trading on 8 August 2025.
Bottom Line?
Manuka’s successful capital raise sets the stage for a critical production restart, but execution and regulatory approvals remain key hurdles ahead.
Questions in the middle?
- Will Manuka meet its early 2026 production restart target amid operational challenges?
- How will the repayment of debt impact the company’s financial flexibility going forward?
- What progress can be expected on the Trans-Tasman Resources approval process in the near term?
