- Manuka Resources (MKR) has joined the Official List of the ASX following a $7 million initial public offering
- According to its prospectus, dated May 22, 2020, the company issued around 35 million shares at $0.20 each, indicating a market capitalisation of roughly $50 million
- The company owns the Wonawinta silver project and Mt Boppy Resources, which holds the Mt Boppy gold project
- Proceeds raised under the offering will be used primarily to fund infill drilling and exploration programs at the two projects
- Shares in Manuka Resources are expected to begin trading on the ASX as of Tuesday, July 14, 2020
Manuka Resources (MKR) has joined the Official List of the ASX following a $7 million initial public offering.
Pursuant to a prospectus dated May 22, 2020, the company issued around 35 million shares at $0.20 each, resulting in an implied market capitalisation of approximately $50 million.
In late 2016, Manuka Resources acquired the Wonawinta silver project in central New South Wales. Covering a total land package of 920 square kilometres, the project features a substantial processing plant with an annual capacity of roughly 850,000 tonnes.
With a 52-million-ounce JORC-compliant silver mineral resource, work at the project since its acquisition has been primarily focused on identifying near-term revenue opportunities, including the processing of an existing 500,000 tonnes of silver oxide stockpiles.
Manuka has also undertaken a review of the processing plant to determine any previous operational shortcomings and, following that, designed a detailed plant refurbishment program.
Most recently, the company acquired Mt Boppy Resources, which owns the Mt Boppy gold project. Also located near Cobar in New South Wales, the project commenced the processing of remaining ore stockpiles in April this year. Over the next 12 months, Manuka will continue processing this ore with the intention of recovering between 22,000 and 24,000 ounces of gold.
In addition, the company has plans to begin the mining and processing of shallow silver oxide resources at the Wonawinta silver project in the first quarter of 2022.
With the initial public offering complete, Manuka will use the proceeds to fund a program of infill drilling and exploration work at both the Wonawinta and Mt Boppy projects.
It’s expected that the company’s shares will begin trading on the ASX under the symbol 'MKR' as of Tuesday, July 14, 2020.