Manuka Resources (NZE:MKR, ASX:MKR) obtained firm commitments to raise AU$14.5 million through a placement of about 207 million new ordinary shares at a price of AU$0.07 each, according to a Monday filing with the Australian and New Zealand bourses.

The company will also offer eligible shareholders a chance to subscribe for new shares under a separate share purchase plan at the same price, it said.

Manuka will use the placement proceeds to fund the completion and commissioning of silver de-slime circuits at its Wonawinta project in New South Wales, as well as for working capital.

Construction of the Wonawinta crushing and de-slime circuits are targeted for completion in the fourth quarter, with commissioning planned for December.

The company's New Zealand shares fell nearly 16% in recent Monday trade, while its Australian shares shed 10%.