Manuka Raises US$30M in Senior Secured Facility to Fund Mining Projects
Manuka Resources has locked in a US$30 million senior secured loan facility with Nebari to refinance debt and fund production at its Wonawinta and Canbelego mines, positioning itself to capitalise on the current precious metals cycle.
- US$30 million senior secured loan facility finalized with Nebari
- Refinancing of existing A$19 million debt completed
- Funding allocated to Wonawinta silver and Canbelego gold projects
- Warrants issued to Nebari as part of financing terms
- Production restart targeted for Q2 2026
Manuka’s Financial Reset
Manuka Resources Ltd has taken a decisive step to secure its financial footing by entering into a definitive loan agreement with Nebari Natural Resources Credit Fund II, LP for a US$30 million senior secured term facility. This new funding package replaces Manuka’s previous A$19 million debt, which has now been fully repaid, effectively streamlining the company’s capital structure ahead of its production restart.
The loan facility is structured to support Manuka’s dual mining operations at Wonawinta, a silver project, and Canbelego, a gold project. The company has already drawn the first tranche of US$26 million, with the remaining US$4 million tranche available until 2030, providing flexibility for future funding needs.
Strategic Importance of the Facility
Manuka’s Managing Director and Executive Chairman, Dennis Karp, emphasised that this financing marks the final hurdle before the company can resume production. The timing is critical, as Manuka aims to leverage the current upswing in precious metals prices. The facility’s terms include a four-year repayment schedule with interest paid monthly, and Nebari holds first-ranking security over Manuka’s assets, underscoring the lender’s confidence in the company’s projects.
In addition to the loan, Nebari has been issued warrants allowing them to subscribe for shares in Manuka at a fixed exercise price, which could lead to equity dilution but also aligns Nebari’s interests with the company’s success. The issuance of these warrants reflects a common practice in resource financing, balancing risk and reward for both parties.
Looking Ahead
With the financial package in place, Manuka is targeting a production restart in the second quarter of 2026. This move positions the company to become Australia’s largest primary silver producer once again, while also advancing its gold operations. The collaboration with Nebari, facilitated by Alvarez & Marsal Asia Limited, has been described as efficient and effective, suggesting a strong partnership foundation.
However, the company has yet to decide whether to draw on the second tranche of the facility, leaving some uncertainty about the full extent of future funding and potential dilution from additional warrants. Investors will be watching closely for updates on production milestones and any further capital moves.
Bottom Line?
Manuka’s secured funding clears the path for production restart, but future drawdowns and warrant exercises will be key to watch.
Questions in the middle?
- Will Manuka draw on the second tranche of the US$30 million facility?
- How will the issuance of warrants impact shareholder dilution over time?
- What are the expected production timelines and output volumes for Wonawinta and Canbelego?
