Manuka Resources Raises A$8M To Start Mt Boppy Gold Production

Manuka Resources Ltd (ASX: MKR) has secured firm commitments to raise A$8 million to bring the Mt Boppy Gold Mine into production in 2024.

The capital raise from institutional and other exempt investors is at A$0.06 per share.

Staged growth strategy

Manuka is pursuing a staged growth strategy initially focused on gold and silver production from the Cobar Basin, NSW.

As part of its strategy, Manuka recently completed a drilling program to firm up confidence in the Mt Boppy resource.

The current Mt Boppy resource is estimated at 4.3 million tonnes at 1.19 g/t gold.

New gold processing facility

Manuka has developed an initial 5-year mine plan at Mt Boppy which is forecast to generate an average A$19 million EBITDA per annum.

To achieve this, the capital raising will fund the establishment and ramp-up of a fit-for-purpose gold processing facility on site.

The first doré production is scheduled for Q4 2024.

Previously, ore mined at Mt Boppy had been transported, to and processed at, the Wonawinta Silver Mine located 150km south of Mt Boppy.

Self-sustaining growth plan

Manuka Executive Chairman Dennis Karp said: “We are delighted to announce this significant capital raising for the company and look forward to launching immediately into the execution of our strategy to establish on-site processing capacity at Mt Boppy and potentially commencing gold doré production later this year.

Karp said that bringing a new processing plant at Mt Boppy online represents Stage 1 of the company’s staged self-sustaining growth plan, that is focused initially on production and free cash generation from our Cobar Basin gold and silver projects, and subsequently development of its world-class VTM Sands Project in New Zealand.

 

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