Manuka Resources has successfully passed technical due diligence for a US$22.5 million loan from Nebari, paving the way for a silver and gold production restart at its Wonawinta and Mt Boppy projects.
- Nebari completes technical due diligence on Wonawinta and Mt Boppy projects
- US$22.5 million senior secured loan facility pending legal due diligence
- Loan expected to close by 20 February 2026, subject to final credit approval
- Recent A$15 million capital raise complements funding for production restart
- First silver production targeted for Q2 2026, supporting debt repayment and working capital
Technical Due Diligence Milestone Achieved
Manuka Resources Limited (ASX – MKR) has announced a significant step forward in securing financing to restart production at its key precious metals projects. The company confirmed that Nebari Natural Resources Credit Fund II LP has completed its technical due diligence on Manuka’s Wonawinta silver project and Mt Boppy gold project to its satisfaction. This milestone clears a major hurdle in finalising the US$22.5 million senior secured loan facility initially agreed upon in December 2025.
Loan Facility and Funding Strategy
The loan facility is designed to provide Manuka with the necessary capital to ramp up production, repay existing debt, and support working capital needs. Alongside a recent A$15 million capital raising, the funding package aims to ensure the company is fully financed through to the commencement of silver production at Wonawinta, which is targeted for the second quarter of 2026. The loan documentation process is underway, with final legal due diligence expected imminently and definitive agreements anticipated to be signed around 20 February 2026, subject to Nebari’s final credit approval.
Operational Outlook and Market Context
Manuka’s Executive Chairman, Dennis Karp, highlighted the significance of this financing phase, noting that production will start from stockpiles, enabling the company to become cashflow positive early in the production cycle. This timing is particularly favourable given the current high prices for both gold and silver, which could enhance the project's profitability. The restart of operations at Wonawinta and Mt Boppy represents a critical juncture for Manuka, potentially transforming its financial position and operational momentum.
Next Steps and Investor Considerations
While the technical due diligence completion is a positive development, investors should note that the final legal due diligence and credit approval remain outstanding. The company has committed to providing further updates once full documentation is executed and drawdowns commence. Market watchers will be keen to see how the finalisation of this loan facility impacts Manuka’s share price and credit profile, as well as the operational progress toward first production.
Bottom Line?
Manuka’s financing puzzle is nearly complete, setting the stage for a pivotal production restart amid strong precious metals prices.
Questions in the middle?
- Will Nebari’s final legal due diligence and credit approval proceed without delay?
- How will the combined funding impact Manuka’s debt levels and financial flexibility?
- What operational risks remain as Manuka targets silver production in Q2 2026?