- Manuka Resources (MKR) is in a trading halt ahead of raising fresh capital
- It isn’t yet clear how much money will be raised nor how the company plans to spend the funds
- The materials stock recently announced it will buy OceanaGold’s Reefton processing plant for $400,000 which includes a $30,000 deposit that has already been paid
- Manuka says the addition of the plant will complement the capacity of its existing Wonawinta deposit and increases flexibility
- Manuka last traded at 34 cents on February 21
Manuka Resources (MKR) has placed its shares in a trading halt until Thursday, February 24.
The company said the trading halt would give it the necessary time to secure commitments from sophisticated and professional investors for a proposed capital raise.
It isn’t clear how much Manuka will raise nor how it will spend the money once received.
At the start of the month, the materials stock struck an agreement to purchase multinational gold producer Oceana Gold’s Reefton processing plant which is part of Oceana’s Reefton Restoration Project.
The company had already paid a $30,000 deposit and it said it would pay an additional $370,000 from its ‘internal resources’.
According to Manuka, the purchase price is a fraction of what it costs to buy new flotation plant equipment.
Prior to the plant being placed under care and maintenance in 2017, it produced over 600,000 ounces of gold since 2007.
Manuka expects to commence relocating the plant by mid this year and believes it could have it onsite, production ready and adding to the existing Wonawinta deposit capacity by early 2023.
The company said adding a flotation circuit complements its existing 850,000 tonnes per annum leach circuit and increases processing options and flexibility.
Manuka last traded at 34 cents on February 21.