Manuka Resources (ASX:MKR) is set to raise $1.53 million through an additional placement, following the closure of its $7.97 million underwritten entitlement offer. The funds will be used to support activities at its Wonawinta processing plant, located in New South Wales. Manuka Resources is a gold and silver exploration company focused on assets in the Cobar Basin region of New South Wales. It aims to progress production and exploration activities in the area.
The company initially received applications to raise $1.08 million through the entitlement offer, issuing a total of 25.19 million shares before associated costs. The remaining $6.88 million will be sourced from sub-underwriters, with a total of 160.05 million shares on offer to them.
In conjunction with the entitlement offer, Manuka Resources will issue an additional 26.53 million shares to sub-underwriters, along with 9.09 million shares to creditors for the $1.53 million placement. All shares are priced at $0.043 each. Lead managers and sub-underwriters may also receive an additional 10.96 million shares upon completion of the entitlement offer as underwriting fees.
Sub-underwriters will also be granted 20 million options each, which can be converted into shares at an exercise price of $0.10 before the third anniversary of their issue. The capital raise aims to provide necessary funding for Manuka’s ongoing operations and development initiatives.
