Manuka Resources has drawn down a US$26 million tranche of a US$30 million debt facility, exited care and maintenance at Wonawinta, and signed a major mining contract as it targets production restart in late Q2 2026.
- US$30 million senior debt facility secured
- Care and maintenance officially ended
- Signed A$190 million mining contract with Macmahon
- Strong Cobar Basin economics with A$805 million NPV8
- Exploration drilling ongoing at Mt Boppy and Pipeline Ridge
Financing and Operational Restart Milestones
Manuka Resources Limited (ASX:MKR) has taken a decisive step toward resuming production at its Wonawinta Silver Project by drawing down US$26 million of a US$30 million senior secured debt facility from Nebari Natural Resources Credit Fund II LP. This tranche, combined with unused facilities and cash reserves, leaves the company well-funded through to production, which is targeted for late Q2 2026.
The company formally exited its care and maintenance phase on 9 March 2026, transitioning into an active restart phase. Workforce mobilisation, plant refurbishment, and commissioning preparations have advanced on schedule, supported by the establishment of a senior site-based operational leadership team largely sourced from Central West NSW.
Major Contract and Plant Upgrades
Manuka has inked a Letter of Intent with Macmahon Contractors Pty Ltd for open pit mining services valued at approximately A$190 million over a five-year term, signalling a significant operational commitment. Additionally, the company has contracted Bond Equipment of South Africa to supply and build an additional front-end circuit at Wonawinta to handle the higher clay content ores, a critical upgrade to optimise plant performance.
Meanwhile, operations at the Mt Boppy gold project have commenced with contractor Consolidated Mining & Civil mobilised to provide crushing and screening services. Early stockpiles of gold and silver-bearing material are being established, with haulage to Wonawinta underway post quarter end, supporting the build-up of run-of-mine stockpiles ahead of plant commissioning. These developments build on the company's earlier progress in crushing and haulage activities reported in April 2026, which helped keep the production restart timeline on track crushing and haulage underway.
Robust Project Economics and Exploration Advances
An updated Pre-Feasibility Study for the Cobar Basin assets confirms strong economics, with a net present value (NPV8) of A$805 million and average annual EBITDA around A$127 million. The study underpins a 10-year mine plan targeting production commencement in Q2 2026, supported by a mix of Ore Reserves and Mineral Resources. This financial outlook aligns with the company's previous detailed mine plan disclosures A805M NPV8 boost.
Exploration drilling continued during the quarter with three scout diamond holes testing southern strike and depth extensions of the Mt Boppy gold mineralisation. While no significant high-grade zones were intersected, the programme improved geological understanding and targeting confidence. Resource definition drilling also commenced at the Pipeline Ridge Gold Project, aiming to define a maiden gold resource with a ~3,165m RC drilling programme targeting shallow oxide gold mineralisation suitable for open pit extraction.
Taranaki VTM Project Regulatory Setback
On the regulatory front, Manuka withdrew its Fast-track application for the Taranaki VTM Project following a draft decision by New Zealand’s EPA to decline marine and discharge consents required under the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Act 2012. The company maintains that the project is environmentally benign and economically significant but is now assessing alternative development pathways and strategic options to secure necessary approvals and community support. This regulatory hurdle adds uncertainty to the project’s timeline and development strategy EPA draft decision impact.
Financial Position and Cashflow
Manuka ended the quarter with A$9.974 million in cash and total borrowings of A$44.905 million, with unused financing facilities of A$11.232 million. Cash outflows reflected ongoing exploration, development, and preparatory activities, while financing inflows included the drawdown of the Nebari facility. The company reported no open hedge contracts as of 31 March 2026, positioning it with approximately 2.8 quarters of funding based on current expenditure rates.
Bottom Line?
Manuka’s progress toward production restart is tangible, but regulatory hurdles at Taranaki and cost dynamics warrant close monitoring as initial output approaches.
Questions in the middle?
- How will fluctuating fuel costs affect Manuka’s operational expenses during restart?
- What alternative pathways might Manuka pursue to advance the Taranaki VTM Project?
- Will exploration at Pipeline Ridge translate into a meaningful resource to supplement Wonawinta feed?