Manuka Resources Ltd (ASX:MKR) has received firm commitments for a A$5 million placement to sophisticated, professional and institutional investors.
Executive Chairman, Dennis Karp, said demand for the placement was very strong from both existing and new investors.
“This funding, combined with anticipated cashflows from Wonawinta silver production which commences in March, provides a strong footing for the company to continue its exploration programmes and plans to relocate the recently acquired 1MTPA flotation circuit to Wonawinta.
“The company has an aggressive exploration programme underway with the current drill programme nearing completion at Mt Boppy and our Canbelego tenements, and our focus then shifting to exploration targets on the western flank of the Cobar Basin.
“IGO Ltd’s bid for Glencore’s CSA Copper Mine and Peel Mining Ltd’s recent A$23m raising, highlight the strong corporate and investor interest in the Cobar region.
“Manuka will be one of the only companies in the region with excess production capacity, underscoring its strategic position in the Cobar basin.”
Funds raised from the Placement will be used towards:
• A smooth transition from Mt Boppy gold production to Wonawinta silver production;
• Ongoing exploration drilling at both Mt Boppy and Wonawinta: and
• General working capital.
Evolution Capital Pty Limited has acted as Lead Manager to the Placement.
For further information please visit: https://www.manukaresources.com.au/
