Manuka’s Restart Hinges on Final Approval of US$22.5M Loan Facility

Manuka Advances Financing for Wonawinta Restart

Manuka Resources Limited (ASX – MKR) has taken a significant step toward resuming operations at its Wonawinta Silver Mine by executing a non-binding term sheet for a US$22.5 million senior secured loan facility with Nebari Natural Resources Credit Fund II LP. This funding is earmarked primarily to finance the restart of silver and gold production, with first output expected in the second quarter of 2026.

The loan facility complements a recent A$15 million capital raising, collectively positioning Manuka to be fully funded through to production. The company also plans to use part of the proceeds to repay existing debt, thereby strengthening its financial footing as it prepares to ramp up operations.

Strategic Partnership with Nebari

Nebari, a US-based specialist in mining and natural resources financing, has provided initial credit-approved terms for the four-year facility. However, final credit approval and funding remain contingent on customary conditions, including the execution of detailed transaction documents and completion of technical, commercial, and legal due diligence.

Manuka’s Executive Chairman Dennis Karp highlighted the timing of the facility as particularly opportune, noting the strong momentum in silver prices. He emphasized that the company’s cash flow is highly sensitive to silver price movements, with every US$1 increase potentially adding A$20 million to project revenues. This backdrop provides a favorable environment for Manuka as it aims to re-establish itself as Australia’s largest primary silver producer.

Looking Ahead

With the loan facility and recent capital raise, Manuka is positioning itself to navigate the complexities of restarting a major mining operation. The company’s focus will now shift to finalizing the loan documentation and progressing toward drawdown, while closely monitoring silver market conditions that will heavily influence its financial performance.

Investors will be watching for updates on the completion of due diligence and the commencement of production activities at Wonawinta, which could mark a pivotal chapter in Manuka’s growth trajectory.