Manuka Resources Limited (ASX:MKR) Secures $1 Million Funding
Funding Overview
Manuka Resources Limited (ASX:MKR) has successfully secured commitments to raise up to A$1 million through the issuance of Convertible Notes. The notes have a conversion price set at a 70% premium to the closing price of 3.5 cents per share on 28 November. This funding will bolster the company’s balance sheet and support general operations amid ongoing refinancing efforts of core debt facilities and the restart of gold production at the Mt Boppy project.
Convertible Note Details
The capital raise will occur in two tranches. The first tranche of $500,000 is set to conclude today, while the second tranche of an additional $500,000 depends on an extension or refinancing of the existing facility from TransAsia Capital Finance. Notably, if the second tranche conditions are met, the maturity date may extend to 14 May 2025.
Executive Remarks
Dennis Karp, Executive Chairman of Manuka Resources, expressed the company’s satisfaction with the successful fundraising effort, stating, “We are pleased to have completed a convertible note raising totalling $1 million, with strong interest and support from new investors. We thank Gam Company Pty Ltd as the leader of this raising.”
Future Focus
Currently, Manuka is prioritising the restart of its high-margin operations at the wholly-owned Mt Boppy Gold Project, located east of Cobar. The company is also advancing necessary approvals for its vanadium-rich iron sand project situated in New Zealand’s Southern Taranaki Bight.
Motley Fool contributor Kiarra Jackson 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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