Manuka Resources capital raise for Mt Boppy Gold Mine

Manuka Resources Limited (ASX: $MKR) has secured firm commitments for a $8 million capital raise to bring the Mt Boppy Gold Mine into production in 2024. The funds will be used to establish an on-site processing facility for gold recovery from oxidised ore, with additional capital to be funded from project cash flows for a flotation circuit to process sulphide ore. The company also plans aggressive exploration to increase annual gold production and extend the mine's life, with potential support for the restart of the Wonawinta Silver Mine in 2025.

Executive Chairman's perspective on the capital raise

Manuka's Executive Chairman, Dennis Karp, expressed delight at the significant capital raising and the immediate execution of the strategy to establish on-site processing capacity at Mt Boppy. He emphasized that this marks the first stage of the company's growth plan, focusing on production and free cash generation from their Cobar Basin assets, followed by the development of the VTM Sands Project in New Zealand. With firm commitments and a strong gold and silver market, Karp highlighted the exciting prospects for Manuka shareholders.

Outlook and future plans

The $8 million capital raise will enable Manuka Resources to progress with the establishment of on-site processing at Mt Boppy, leading to potential gold doré production later in the year. The company's staged growth strategy aims to generate free cash flow from gold and silver projects in the Cobar Basin, followed by the development of the VTM Sands Project in New Zealand. Additionally, the cash flows from Mt Boppy will support the potential restart of the Wonawinta Silver Mine in 2025. Manuka Resources is targeting the release of an updated Reserve Statement for the Wonawinta Silver Mine in the current June quarter, indicating a positive outlook for the company's future endeavors.