Manuka Resources Launches $14.5M Raise to Unlock Silver Production by January 2027
Key Takeaways
- Manuka Resources has secured firm commitments for a $14.5 million placement at $0.07 per share, with $8.5 million allocated directly to completing and commissioning the Wonawinta silver de-slime circuit.
- Gold processing has already recommenced at Wonawinta, with first gold sales targeted by end of September 2026 — generating near-term revenue ahead of silver circuit commissioning.
- Silver circuit commissioning is planned for December 2026, with first silver revenues targeted from January 2027, representing a roughly three-month extension to the original production timetable.
- Approximately 207 million new shares will be issued, priced at a 10.3% discount to the 2 September 2026 closing price and a 20.1% discount to the five-day VWAP.
- A Share Purchase Plan opens 14 September 2026, allowing eligible Australian and New Zealand shareholders to participate at the same $0.07 price, capped at $30,000 per investor and targeting up to $1 million in additional proceeds.
Manuka secures $14.5 million to complete silver commissioning and ramp up production
Manuka Resources (ASX: MKR) has received firm commitments to raise $14.5 million through a placement to institutional, sophisticated and professional investors. The capital marks a significant transition point for the company as it moves from construction into active production at its Wonawinta processing facility in the Cobar Basin.
Gold processing has already recommenced at Wonawinta, with first gold sales targeted by the end of September 2026. The raise now funds the final piece of the production puzzle: completing and commissioning the silver de-slime circuit, with first silver revenues targeted from January 2027.
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Q4 2026 production milestones and how the capital will be deployed
The largest allocation of the placement proceeds, $8.5 million, goes directly to completing and commissioning the Wonawinta silver de-slime circuit. A further $5.25 million covers office, camp and working capital to support the production ramp-up through to steady-state operations, with $0.75 million covering offer costs.
| Item | Amount | Purpose |
|---|---|---|
| De-slime circuit to commissioning | A$8.5 million | Complete and commission Wonawinta silver de-slime circuit |
| Office, camp and working capital | A$5.25 million | Support production ramp-up through to steady-state |
| Offer costs | A$0.75 million | Lead manager and placement fees |
| Total | A$14.5 million |
The announcement acknowledges that the capital requirement reflects increased project costs, including freight, installation and construction costs, as well as an approximately three-month extension to the original production timetable. Management has been transparent about this, framing the raise as the funding required to complete installation and commissioning through to steady-state production.
The production sequencing is deliberate: gold runs first to generate near-term revenue, with silver ore introduced only after de-slime commissioning in December 2026. The key milestones in order are:
- Gold processing recommenced at Wonawinta — August 2026
- First gold sales targeted — end of September 2026
- Crushing and de-slime circuit construction targeted for completion — Q4 2026
- Silver circuit commissioning planned — December 2026
- First silver revenues targeted — January 2027
Eligible Australian and New Zealand shareholders will also have the opportunity to participate via a Share Purchase Plan (SPP), with the company aiming to raise up to a further $1 million at the same $0.07 placement price, with individual subscriptions capped at $30,000.
What is a silver de-slime circuit and why does it matter?
A de-slime circuit removes fine, clay-like particles from ore before it enters the processing plant. These ultra-fine particles are problematic in silver processing because they coat mineral surfaces and interfere with the chemical reactions needed to extract silver, significantly reducing recovery rates if left untreated.
At Wonawinta, the de-slime circuit is required for silver production. Until it is commissioned, the timing has been structured to maximise near-term revenues from gold production before introducing silver ore. That is why the $8.5 million allocated to this circuit represents the largest single line item in the use of proceeds table, with first silver revenues targeted from January 2027. Getting this circuit operational by December 2026 is what makes the January 2027 first silver revenue target achievable.
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Placement terms and shareholder opportunity
The placement price is $0.07 per share, representing a 10.3% discount to the closing price on 2 September 2026 and a 20.1% discount to the five-day volume weighted average price (VWAP). The VWAP is the average share price weighted by trading volume over a given period, commonly used to price placements fairly relative to recent market activity.
Approximately 207 million new fully paid ordinary shares will be issued in total, with 152,519,629 issued under Listing Rule 7.1 and 54,623,228 under Listing Rule 7.1A. All new shares rank equally with existing ordinary shares.
Bell Potter Securities acted as Lead Manager to the placement and will be paid up to 6% on capital raised.
Key dates for the placement and SPP are as follows:
- Settlement of New Shares: Thursday, 10 September 2026
- Allotment of New Shares: Friday, 11 September 2026
- SPP opens: Monday, 14 September 2026
- SPP closes: Wednesday, 23 September 2026 (5pm Sydney time)
- SPP results announced: Friday, 25 September 2026
- SPP issue date: Monday, 28 September 2026
- SPP shares quoted on ASX: Wednesday, 30 September 2026
Dennis Karp, Executive Chairman, Manuka Resources
“Steady state production and consistent revenues from precious metal sales are now becoming a near-term reality for Manuka.”
Karp also flagged a forthcoming maiden mineral resource release at the Pipeline Ridge gold project, located less than 30km south of Mt Boppy, as an additional near-term catalyst for the company.
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