Manuka Resources’ Wonawinta processing plant in the Cobar Basin has moved a step closer to restarting after the company received a binding offer from an Australian non-bank lender.
The binding offer would effectively refinance the company’s existing senior debt facility and, ultimately, kick-start production by the first quarter of 2026.
Manuka Resources executive chairman Dennis Karp said the binding offer would enable the company to capitalise on surging gold and silver prices.
“I am very pleased to see the assignment of the existing debt facility and security package to a unit trust structure comprising Manuka shareholders, all with the common objective of seeing the company return to production in the near term and take advantage of historic gold and silver prices,” Karp said.
The company estimates it will cost $18.9 million to get the plant, located in central New South Wales, up and running again. The restart date is contingent on details being finalised for the new debt facility and the execution of binding documents over the coming quarter.
To support the refinancing, the senior debt facility of around $US12.4 million ($A18.79m) has been assigned from TransAsia Private Capital to a unit trust comprising existing significant (non-related) shareholders, with an extension of the maturity date by six months to March 2026.
“The execution of a restart financing solution is the next step and one we expect to deliver upon over the coming quarter,” Karp said. He said further updates to the market will be provided in due course.
The Cobar basin assets include the shallow (<60 metres) Wonawinta silver resource comprising 38.3 million tonnes at 41.3g/t Ag, containing 51 million ounces of silver.
Sensitivity analysis has shown that for every 10 per cent increase in the silver price above the assumed $50/oz, the project net preserve value (NPV) increases by $43 million.
The Wonawinta deposit is open along strike and at depth with previous drilling by the company, intersecting base metals sulphides down dip.
Onsite infrastructure at Wonawinta includes a one million per tonne annum processing plant, camp accommodation, an airstrip, administration offices, and tailing storage facility, allowing for fast-tracked production.
Manuka has also released a 10-year production plan based on its wholly- owned silver and gold assets in the Cobar basin, with the production target comprising the mining and processing of 10.9 million tonnes containing 19 million ounces of silver and 47 thousand ounces of gold.
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