Manuka Resources Taps Final Nebari Cash and Hands Over 8.2 Million Warrants — Can Revenue Arrive Before Dilution Catches Up?

Shares of Manuka Resources (MKR.JO) slid roughly 9.8% to $2,359 after the Australian gold and silver miner disclosed the issuance of 8.2 million warrants tied to its final drawdown from a major U.S. debt facility, reigniting dilution fears for a company that has yet to generate meaningful revenue.

  • The Warrants Add to an Already Ballooning Share Count. Nebari has been issued 8,232,731 warrants exercisable at $0.1357 per share until June 26, 2030. These come on top of 36,423,612 Tranche 1 warrants already issued to Nebari earlier this year — meaning the lender now holds rights to over 44 million new shares in total. Shareholders have already been substantially diluted in the past year, with an 82% increase in shares outstanding. For existing holders, every warrant exercised shrinks their slice of the company further.

  • The Final $4 Million Closes a $30 Million Bet on a Mine Restart. Manuka has fully drawn down the second tranche of its US$30 million senior secured term facility with Nebari, securing an additional US$4 million to fund the Wonawinta silver and Canbelego gold projects.

Interest costs are paid monthly at a rate of the higher of 3-month SOFR and 4% plus an 8.5% margin — expensive debt for a company with revenue less than US$1 million and net losses of A$21.4 million over the trailing twelve months.

  • Revenue Is Weeks Away — If Execution Holds. Gold revenues are expected from mid-July 2026, ahead of targeted silver output in late September.

Management highlights that Wonawinta has been rebuilt from care and maintenance to a site employing more than 80 people. Hitting those dates is now existential: the company has less than a year of cash runway based on its current free cash flow trend of negative A$11 million.

  • Leverage Leaves No Room for Error. Debt-to-equity near 17.7x indicates extreme leverage and minimal equity cushion. The loan is secured over all company assets with principal repayments starting after 18 months. If gold and silver prices cooperate and production starts on schedule, the math can work. If either stumbles, the lender — not shareholders — holds the cards.