Manuka Raises A$23.3m, Extends Loan Repayment to March 2026

Capital Raising and Debt Restructuring

Manuka Resources Limited has made significant strides in strengthening its financial position during the September 2025 quarter. The company completed an entitlement offer raising A$8.3 million at 4.3 cents per share, fully underwritten by existing shareholders. Shortly after quarter-end, Manuka announced a further A$15 million placement aimed at funding the restart of its Wonawinta Silver Mine and exploration activities at Mt Boppy. This placement, priced at 7.5 cents per share, is being issued in two tranches, with the second tranche pending shareholder approval at the upcoming annual general meeting.

Alongside these capital raises, Manuka restructured its debt facility with Tennant Metals, converting a portion of the A$18.2 million debt into equity and subordinated debt facilities. This move not only eases immediate repayment pressures but also signals renewed shareholder confidence in the company’s growth trajectory.

Progress on Taranaki VTM Project Approvals

Manuka’s wholly owned New Zealand subsidiary, Trans-Tasman Resources, is advancing through the environmental approval process for the Taranaki VTM Project. The fast-track approvals expert panel began assessing the project in August and conducted hearings in October. The panel’s decision on environmental consents is expected by 18 March 2026. This project is of national significance to New Zealand, projected to generate NZ$854 million in annual export revenue, contributing over half of the government’s goal to double mineral export earnings by 2035.

Operational Outlook and Market Position

Manuka is targeting a production restart at its Australian Wonawinta and Mt Boppy mines by late March or early April 2026. The company’s Executive Chairman, Dennis Karp, highlighted the strong performance of precious metals markets, with silver prices up 30% and gold up 15% during the quarter, underpinning the attractiveness of Manuka’s assets. The company’s recent capital raisings and debt restructuring are positioned to support this restart and exploration efforts, with a focus on expanding mineral resources and extending mine life.

Additionally, Manuka’s listing on the New Zealand Stock Exchange in late September has broadened its shareholder base, particularly attracting new New Zealand investors. This expanded investor interest aligns with the company’s growing profile in the region and its strategic focus on the Taranaki VTM Project.

Financial Position and Challenges Ahead

At quarter-end, Manuka reported total borrowings of A$39.09 million, a modest cash balance of A$0.368 million, and unused financing facilities of A$2.03 million. Operating cash flows remain negative, reflecting ongoing development and exploration expenditures. The company acknowledges the need to finalize its restart strategy within the coming month, aiming to complete arrangements before year-end.

Exploration activities continued at a low level during the quarter, with some deferrals due to staff reductions. Plans are in place to resume prospectivity analysis at Wonawinta and Mt Boppy, which could identify new drill targets and potentially increase the mineral resource base.