News: Manas Resources completes $1.1M entitlement offer

Manas Resources (ASX:MSR) has completed its $1.1 million fully-underwritten entitlement offer priced at $0.015 per share, demonstrating shareholder support for the company and its assets.

The funds were raised through the issue of 73,607,762 shares representing subscriptions to entitlements as well as shortfall shares.

The rights issue was fully underwritten by Baillie Asset Management Pty Ltd.

“We are delighted with the support of shareholders who, in addition to their own entitlements, subscribed to all of the shortfall too thus endorsing the Board’s efforts to extract maximum value from Shambesai Gold Project,” managing director Stephen Ross said.

The company recently resolved to consider sale offers for the entire project after receiving non‐binding, indicative and incomplete proposals ranging from possible corporate and project financing, to expressions of interest in purchasing the gold project.

Last month, Manas updated the economic parameters for its Shambesai Gold Project, confirming that it is a low-cost, high-margin project that can be commissioned quickly for a low capital cost.

Based on a gold price of US$1,300, total life-of-mine costs (C3) after capital and tax are estimated to be US$720 per ounce of gold and an expected pay back of just 10 months from first gold production.

The Post-Tax Net Present Value is estimated at US$103M with a recalculated Internal Rate of Return of 106%.

Capex to first gold pour is estimated at US$41 million.

Net cash flow after capital, taxes and royalties is projected at US$138 million from production of 241,000 ounces of gold over a 4 ½ year mine life at a US$1,300 gold price.

Average life-of-mine cash costs (C1 costs excluding revenue based royalties and taxes) of US$416 per ounce of gold, placing Shambesai in the lowest quartile of cash costs for gold producers worldwide.

Permitting is largely completed allowing a start of plant construction immediately upon financing with a 9-month construction time to commissioning estimated.

Shambesai has a Ore Reserve of 2.4 million tonnes at 3.7 grams per tonne for 279,000 ounces of contained gold and an overall Resource of 17.3Mt at 2.2g/t, or 1,184,000 ounces of contained gold.