Manuka Resources IPO for gold and silver prospects
Manuka Resources, the nation’s newest gold and silver producer, ran its IPO last week. The company was looking to raise between $5 to $7 million to explore and mine highly prospective tenements across its two sites in the Cobar Basin, Central NSW.
Manuka Resources, the nation’s newest gold and silver producer, ran its IPO last week. The company was looking to raise between $5 to $7 million to explore and mine highly prospective tenements across its two sites in the Cobar Basin, Central NSW.
The Cobar Basin, the location of Manuka’s Mt Boppy and Wonawinta sites, has some of the deepest and longest operating mines in Australia.
In 2016, Manuka purchased Wonawinta, a mine site that contains approximately 52 million ounces of silver.
The site also has a refurbished plant that is operating 24 hours a day, 7 days a week to process gold from the Mt Boppy site, purchased in mid-2019.
Mt Boppy historically produced an impressive 500 000 ounces of high-grade gold at 15 grams per tonne. Manuka began processing the remaining gold last April and expects to extract more than 30 000 ounces of gold within the first 12 months.
“It’s a very rich deposit,” says Executive Chairman Dennis Karp.
“Very little drilling has been done below 120 metres,” he adds, indicating there’s more gold likely to be found through deeper extensions of the original deposit.
The initial production of gold from the Mt Boppy mine is also providing Manuka with early cash flow to explore 1100 square kilometres of promising tenements across both sites.
Manuka hopes to bolster that, with its IPO which comes just two months after pouring its first gold.
“We opened yesterday. We are astonished by the support from day one,” said Dennis in a presentation on Wednesday 10 June. “The majority of the funds we raise from this IPO will be used for exploration,” he added.
The IPO has now closed and Manuka is set to list on the ASX on July 14, 2020.
Considering the favourable outlook for precious metal prices and Australia’s trajectory to take over China as the world’s biggest gold producer in 2021, Manuka is an company.
Watch the video to learn more about Manuka Resources from CEO Dennis Karp.
Join next week’s ‘Meet The CEOs’ webcast – Click here to book your spot.
Recorded on 10 June 2020 at 12pm.
Reach Markets are the advisors assisting with the management of this offer and may receive fees depending on whether an offer is taken up by investors.
The IPO of securities in Manuka Resources will be made in, or accompanied by, a copy of the prospectus available here. You should consider the prospectus in deciding whether to acquire the securities and anyone acquiring the securities will need to complete the application form that will be in or will accompany the prospectus. Reach Markets are the adviser assisting with the management of this offer and may receive fees if an application is made by investors.
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