Manuka Resources Ltd. has decided not to go ahead with its Australian IPO of up to A$13.0 million and will instead rely on debt funding to advance its Manuka silver project in New South Wales.
The Australian silver explorer has signed a binding term sheet for the debt finance, which Manuka said May 30 has the potential to advance the company toward a production decision in the second half of this year.
Manuka was aiming to raise at least A$10.0 million under its IPO and list on the ASX by June 7.
The company wants to generate early cash flow from the processing of stockpiled silver ore at the Manuka project starting in October.
Meanwhile, Manuka has also agreed to acquire a package of gold-prospective mining leases and exploration licenses in the Cobar Basin in central New South Wales. Manuka said the acquisition is a near-term gold production opportunity with previously reported reserves.