Macmahon (ASX:MAH) has formalised its entry into a strategic partnership with Manuka Resources (ASX:MKR).
According to a recently released letter of intent, the two companies will collaborate to restart mining operations at the Wonawinta silver project, a major asset situated within the resource-rich Cobar Basin of central west New South Wales.
The large-scale project is slated for a rapid recommencement, with active mining activities scheduled to begin as early as May.
The agreement establishes Macmahon as the primary provider for open-pit mining services.
Under the anticipated scope of work, the company will oversee critical onsite operations, including drill and blast activities alongside comprehensive load and haul services.
The partnership is underpinned by a formal mining services agreement expected to be finalised in April.
Valued at approximately $190 million over an initial five-year term, the contract represents a substantial addition to Macmahon's order book without placing immediate strain on its internal resources.
Macmahon has confirmed that no additional capital from its FY26 capital expenditure budget will be required to facilitate the restart, allowing its financial guidance for the year to remain unchanged.
Michael Finnegan, Managing Director and CEO of Macmahon, expressed confidence in the venture, noting that the company’s "highly experienced and professional surface mining team" is well-positioned to de-risk the project.
Macmahon aims to help Manuka Resources meet production targets as Wonawinta returns to the global silver market.