Manuka Resources Limited (ASX:MKR) Announces Financing Update and Production Strategy
Financing Progress
Manuka Resources Limited is in discussions with multiple financiers to refinance existing debt and fund the restart of the Wonawinta Silver Mine. Terms sheets have been received and are under consideration, with a binding agreement expected in the third quarter.
Cobar Basin Production Strategy
The company’s 10-year production plan targets mining and processing 10.7Mt of silver and gold in the Cobar Basin, supported by strong silver and gold prices, increasing the project’s NPV to A$153M. A feasibility study is underway to potentially reduce the Mt Boppy open pit to add value to the production plan.
Mt Boppy Gold Mine Re-optimisation
Manuka is reassessing the Mt Boppy Gold Mine open pit to recover an additional 53.5koz of gold. Results from the re-optimisation study will be reported in the upcoming quarter.
Executive Comments
Executive Chairman Dennis Karp stated, “Following the release of our updated Cobar Basin production plan, we have moved rapidly to enter into productive discussions with a number of prospective funders for our development strategy. With technical and legal due diligence reports now complete we are confident of securing a financing facility in the upcoming quarter and bringing Wonawinta back into production in the new year.
In parallel, we are progressing a study on a cut-back at the Mt Boppy Gold Mine. With an in-situ gold grade of over 4g/t, the open pit cut back opportunity presents as a potentially high margin gold operation that will augment, and add significant value to, our Cobar Basin production plan.
We look forward to providing further updates to the market on our financing progress and Cobar Basin production strategy in the near future, along with our plans for the re-optimisation of the Mt Boppy Gold Project.”
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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