Manuka Faces Regulatory Hurdles as NZ Project Approval Looms in March

Financing and Production Restart Plans

Manuka Resources Limited has taken significant strides towards restarting production at its key assets, securing a US$22.5 million loan facility with Nebari Natural Resources Credit Fund II LP. The company is targeting completion of this facility by late February 2026, which, combined with a recently completed A$15 million capital raising, will fully fund the restart of its Wonawinta silver mine and support ongoing exploration activities at Mt Boppy.

The capital raise proceeds are earmarked for plant upgrades, refurbishment, and working capital, reflecting Manuka’s commitment to a smooth transition back into production. The company’s executive chairman, Dennis Karp, highlighted the exceptional silver price environment, noting silver’s 160% gain in 2025 and further appreciation since year-end, underscoring the strategic timing of the restart.

Exploration Progress and Project Development

Exploration drilling programs have commenced at Mt Boppy, with diamond drilling targeting extensions down to 500 metres. The program is over halfway complete despite challenging heat conditions, with assay results expected shortly. Simultaneously, the Pipeline Ridge project is advancing with a comprehensive drilling campaign designed to delineate a shallow Indicated Mineral Resource, supporting future resource growth.

At Wonawinta, metallurgical testwork is underway following the completion of 13 vertical diamond core boreholes, which will inform the first 18 months of silver production. These technical developments reinforce Manuka’s readiness to resume operations and expand its resource base.

Regulatory Milestones in New Zealand

Manuka’s New Zealand subsidiary, Trans-Tasman Resources, is progressing through a fast-track environmental approval process for the Taranaki VTM Project. The expert panel has conducted detailed workshops and is expected to announce its decision by 18 March 2026. This project is of national significance, forecast to generate NZ$854 million in annual export revenue and contribute substantially to the New Zealand government’s goal of doubling mineral export earnings by 2035.

The ongoing regulatory engagement, including consultations with Maori groups and assessments of environmental and economic factors, highlights the complex but promising path ahead for this offshore iron sand project.

Financial Position and Outlook

As of 31 December 2025, Manuka reported total borrowings of A$24.2 million, with cash balances of A$2.44 million and unused financing facilities of A$5.8 million. The company’s cash flow reflects ongoing investment in exploration and production development, with no open hedge contracts at quarter-end. The updated Pre-Feasibility Study for the Cobar Basin project forecasts an NPV8 of A$805 million and an IRR exceeding 1,000%, based on conservative commodity price assumptions.

With silver and gold prices surging, and production restart plans well underway, Manuka Resources is positioned to capitalise on favourable market conditions. The company’s strategic focus on both precious metals and iron sands in New Zealand diversifies its growth avenues.