Manuka Resources Launches Fully Underwritten $8 million Capital Raise to Accelerate Production Plans

Highlights:

• Manuka Resources Limited (ASX: MKR) to raise A$8M via fully underwritten entitlement offer.
• Funds will support plant restart, debt repayment, and a 10-year production plan.
• Sub-underwriters Mr. Guoga and a client investor advance interest-free loans to be repaid in equity.

Capital Raise to Fund Restart of Processing Plant and Debt Repayment

Manuka Resources Limited (ASX: MKR) has announced a fully underwritten, non-renounceable entitlement offer to raise approximately A$8.0 million in fresh equity capital. At the time of writing, the offer is priced at A$0.043 per new share, representing a modest 2.5% discount to Manuka’s last closing price. The funds raised will be used to restart the Wonawinta processing plant and support the company's 10-year Cobar Basin Production Plan. Additionally, the capital will be deployed to repay debt obligations and fund working capital requirements. Manuka aims to resume silver and gold production by early Q1 of calendar year 2026.

Strong Investor Backing Through Full Underwriting

The capital raise is fully underwritten by Claymore Capital Pty Ltd, which has secured sub-underwriting commitments from prominent investors, including businessman Mr. Antanas Guoga and another client investor. Each has committed approximately A$4.0 million. Notably, these commitments are being advanced to the company as interest-free loans. Manuka will repay the loans by issuing new shares at the offer price, reducing cash strain while reinforcing shareholder support. A portion of the commitments will also be used to settle outstanding convertible notes, converting debt to equity.

Entitlement Offer Details and Timelines

The entitlement offer, which opens on July 22, 2025, and closes on July 31, 2025, will offer eligible shareholders in Australia and New Zealand 2 new shares for every 9 shares held as of July 17, 2025. Investors applying for their full entitlement can also request additional shares through a Top-Up Offer.

Strategic Turning Point

Executive Director Dennis Karp expressed optimism about the raise, noting that full underwriting at minimal discount reflects investor confidence in Manuka’s assets and near-term production strategy.

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