Manuka Resources (ASX:MKR) has announced a fully underwritten non-renounceable entitlement offer to raise $8 million. The funds are earmarked for advancing the company’s Cobar Basin production plan and restarting the Wonawinta processing plant. Manuka Resources is a precious metals-focused mining company that owns the Wonawinta and Mt Boppy projects in the Cobar Basin. The Cobar Basin hosts some of Australia’s oldest and deepest operating mines and has long been an established mining region.
Under the terms of the offer, which is underwritten by Claymore Capital, new shares will be issued at $0.043 each. This price reflects a 2.5% discount compared to the last closing price on 2 July 2025. The raised capital will also be used to repay existing company debt.
Executive Director Dennis Karp stated that the fully underwritten equity raise, with only a small discount to investors, demonstrates the quality of Manuka’s assets and the investors’ confidence in its near-term precious metals production plan. The company is targeting the restart of silver and gold production in early Q1 2026.
The Wonawinta mine was initially developed as a shallow silver oxide project in 2011-12. Manuka Resources acquired the asset in late 2016 and subsequently conducted a review of its operational history, identifying improvements that could lead to a restart of operations.
