Manuka Raises A$14.5 Million to Complete Silver Circuit and Ramp Up Production
Manuka Resources has secured A$14.5 million through a placement to fund finishing its silver de-slime circuit and accelerate production at Wonawinta, targeting first gold sales by September and silver revenues from January 2027.
- A$14.5 million raised via placement at A$0.07 per share
- Gold processing restarted at Wonawinta with Mt Boppy ore
- Silver circuit commissioning planned for December 2026
- Production timetable extended by approximately three months
- Additional share purchase plan aims to raise up to A$1 million
Capital Raise to Fund Critical Production Milestones
Manuka Resources (ASX:MKR) has secured firm commitments for a A$14.5 million placement, issuing approximately 207 million new shares at A$0.07 each. The raise, supported by institutional, sophisticated and professional investors, is earmarked primarily to complete and commission the silver de-slime circuit at its Wonawinta processing facility and to underpin working capital needs during the production ramp-up phase.
This capital injection comes amid a roughly three-month extension to Manuka’s original production timetable, driven by increased project costs including freight, installation, and construction expenses. The company is now aiming for first gold sales by the end of September 2026, with silver production expected to commence in January 2027 following commissioning of the new circuit in December.
Gold Processing Resumed with Mt Boppy Ore
Following a comprehensive recommissioning program, Manuka has restarted gold processing at Wonawinta, initially treating ore from its Mt Boppy Gold Mine. This restart marks a key operational milestone as the company transitions from construction to production. The sequencing prioritises maximising near-term gold revenues before integrating silver ore processing, reflecting a strategic approach to steady revenue generation.
The recommissioning and ramp-up build on prior announcements of the gold production restart and the planned silver circuit upgrades, which include crushing and de-slime facilities designed to handle the distinct ore characteristics. The silver circuit completion is a pivotal step towards unlocking the full value of the Wonawinta asset.
Share Purchase Plan to Complement Placement
In addition to the placement, Manuka is offering eligible shareholders in Australia and New Zealand the opportunity to participate in a share purchase plan (SPP) aiming to raise up to A$1 million. Shares under the SPP will be priced at the same A$0.07 as the placement, with no brokerage fees, providing retail investors a chance to increase their exposure as the company advances towards steady-state production.
The SPP opens mid-September and closes late September, with new shares expected to commence trading on the ASX by the end of the month. The combination of institutional placement and retail SPP reflects a balanced capital raising strategy to support operational milestones.
Outlook and Project Pipeline
Executive Chairman Dennis Karp highlighted the encouraging investor response as Manuka nears the end of its construction phase. With gold processing underway and silver commissioning imminent, the company is poised to generate consistent precious metal revenues in the near term.
Beyond Wonawinta, Manuka is preparing for a maiden mineral resource release at its Pipeline Ridge gold project, located less than 30km south of Mt Boppy. This new project adds a layer of growth potential to Manuka’s portfolio as it consolidates its position in the Cobar Basin.
Bottom Line?
Manuka’s fresh capital positions it to complete key infrastructure and ramp up precious metals production, but investors should watch commissioning progress and cost control as the company navigates a delayed timeline.
Questions in the middle?
- Will the extended production timetable impact Manuka’s cash flow forecasts and debt servicing?
- How smoothly will the silver de-slime circuit commissioning proceed given increased project costs?
- What potential does the upcoming Pipeline Ridge resource release hold for Manuka’s growth trajectory?
