Geopacific sets up Woodlark development with $45m package

Geopacific's Woodlark gold project is in the pacific 'ring of fire', home to some of the world's best gold projects. Image: Geopacific.

Geopacific Resources has completed a $40 million share placement to fund development of the Woodlark gold project in Papua New Guinea.

Additionally, Geopacific has also offered eligible Australian and New Zealand shareholders a share purchase plan, which will deliver a further $5 million.

The placement was made to sophisticated and professional investors for 1600 million fully paid ordinary shares at $0.025 per share, representing a 10.7 per cent discount to the last close.

The share purchase plan will be offered at $0.025 per share, allowing shareholders to acquire up to $30,000 of new shares.

Geopacific managing director Ron Heeks was pleased with the result of the capital raising, saying it showed the company’s shareholders were committed to seeing Woodlark start production.

“The capital raising has provided an excellent result, with shareholders demonstrating their commitment to moving Woodlark into production,” Heeks said.

“All shareholders, new and existing, clearly understand the tasks and rewards ahead and we are delighted and appreciative of their strong support to begin the process of producing gold.

“The raising will allow the company to commence early site works in preparation for process plant construction, which will enable gold production to be reached in a shorter timeframe.”

The capital raising’s net proceeds will fund front end engineering design, civil construction, relocating the Kulumadau village, mine camp upgrades, project financing costs and other development and expansion working capital.

The share purchase plan will open to shareholders on November 4 and close on November 29.

The Woodlark project is on an island in Papua New Guinea’s Milne Bay province. It is surrounded by world-class mines, including Newcrest Mining’s Lihir and St Barbara’s Simberi, and shows promise for a low-cost, simple processing project.

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