Manuka Raises A$15M at A$0.075 per Share to Accelerate Silver Production
Manuka Resources has raised A$15 million to accelerate production at its Wonawinta Silver Mine and fund exploration drilling at Mt Boppy and Pipeline Ridge in New South Wales.
- A$15 million capital raise via share placement
- Funds allocated to Wonawinta plant upgrades and production restart
- Exploration drilling planned at Mt Boppy and Pipeline Ridge gold deposits
- Placement issued in two tranches, second tranche subject to shareholder approval
- Strong institutional investor support amid positive silver and gold market outlook
Capital Raising to Fuel Growth
Manuka Resources Limited has announced a firm commitment from institutional investors for a A$15 million capital raising through a share placement. The funds are earmarked to accelerate production at the company’s 100% owned Wonawinta Silver Mine and to advance exploration activities at the Mt Boppy Gold Mine and Pipeline Ridge gold deposit, both located within the prolific Cobar Basin in New South Wales.
Restarting Wonawinta, A Production-Ready Asset
The bulk of the capital, approximately A$10.75 million, will be directed towards upgrading and refurbishing the existing 1 million tonnes per annum processing plant at Wonawinta. This move aims to restart silver production within the next six months, positioning Manuka as the only production-ready silver mine operator in Australia. The company anticipates generating free cash flow by the first half of 2026, a significant milestone that could underpin future growth and shareholder value.
Exploration Ambitions in the Cobar Basin
Beyond production, Manuka is allocating A$1 million to exploration drilling at Mt Boppy and Pipeline Ridge, targeting shallow and highly prospective gold deposits. These efforts could yield near-term catalysts if high-impact results emerge, potentially expanding the company’s resource base and reinforcing its strategic position in the region.
Placement Structure and Shareholder Approval
The placement involves issuing approximately 200 million new shares at A$0.075 each, representing a discount to recent trading prices to incentivize investor participation. It will be executed in two tranches, the first tranche of around 34.4 million shares will be issued under existing placement capacity without requiring shareholder approval, while the second tranche of approximately 165.6 million shares awaits approval at the company’s upcoming annual general meeting scheduled for late November 2025.
Market Context and Outlook
Executive Chairman Dennis Karp highlighted the strong investor enthusiasm for both silver and gold markets, underscoring Manuka’s unique position with a production-ready silver asset. The capital raise not only supports operational ramp-up but also reflects confidence in the company’s broader Cobar Basin strategy amid sustained precious metals demand.
Bottom Line?
Manuka’s capital raise sets the stage for a pivotal production restart and exploration phase that could reshape its growth trajectory.
Questions in the middle?
- Will shareholder approval for the second tranche proceed smoothly at the AGM?
- How quickly can Wonawinta achieve commercial production and generate free cash flow?
- What exploration results at Mt Boppy and Pipeline Ridge might unlock further value?
