Geopacific Resources has raised $10.5 million through a share placement to help it advance development of the Woodlark gold project in Papua New Guinea.
The capital raising follows Geopacific’s takeover of Kula Gold, the owner of the project on Woodlark Island.
Geopacific’s stake in Kula has increased to 75.05 per cent over the past month and it has appointed directors to the takeover target’s board.
Managing director Ron Heeks said Geopacific achieved an oversubscribed capital raising, offered without a discount to the closing price on the day prior to the placement.
“We are now in a position to deliver our strategy, to continue to unlock the value and also test the true scale of the Woodlark gold project through exploration,” Heeks said.
Geopacific is also planning to offer a share purchase plan to raise an additional $1 million at 3 cents per share.
Heeks said Geopacific was planning to advance the Woodlark project towards production in the most effective manner.
“The exploration potential of the region is historically and recently known to be significant and drilling results and metallurgical testwork have been consistently positive. We are looking forward to moving to the project forward,” Heeks said.
Woodlark’s development approvals include a 1.8 million tonne per annum conventional carbon-in-leach processing plant.
The company has launched a 16-week metallurgical testwork program at the site and will use the results in a definitive feasibility study for the project.