Manuka Resources (ASX:MKR) has pocketed a combined $5 million that it says will help advance final approvals and studies at its Taranaki Project in New Zealand and Mt Boppy Project in New South Wales.

The Sydney-based miner and explorer will raise approximately $2.5 million via a placement to new and existing sophisticated investors. Under the placement, Manuka will issue more than 35.8 million shares at $0.07, representing a discount of 16.6% to the company’s last closing share price on 29 January of $0.084.

Of those shares, just over 13.8 million — worth $970,000 — will be issued to director-related entities, subject to shareholder approval.

The remaining $2.5 million will come from a debt conversion component of the placement.

Manuka says the proceeds will fund final regulatory approvals at its Taranaki Vanadium Titano Magnetite (VTM) Iron Sands Project off the coast of New Zealand, as well as project studies at its Mt Boppy Gold Project east of Cobar. A number of creditors will also be paid.

In addition to the $5 million raised through the placement and debt conversion, Manuka is looking to raise another $1 million through a share purchase plan. Eligible investors will be able to purchase up to $30,000 worth of shares — also at $0.07 — from 7 February 2024.

Write to Oliver Gray at Mining.com.au

Images: Manuka Resources