Macmahon Holdings (ASX:MAH) has entered a letter of intent (LOI) with Manuka Resources (ASX:MKR, NZE:MKR) to resume mining at the Wonawinta silver project in New South Wales' Cobar Basin, with operations expected to restart in May, according to a Wednesday filing with the Australian bourse.

The LOI includes open-pit operations, covering drilling and blasting as well as loading and hauling activities, per the filing.

The mining services agreement, with an estimated value of around AU$190 million over an initial five-year term, is anticipated to be finalized in April, the filing said.

The project will not require any extra funding from the company's fiscal 2026 budget, and guidance remains unchanged, the filing added.