Geopacific Resources has announced a $6.6 million funding package it will use to ramp up its copper and gold exploration efforts in Cambodia and Fiji.
The Perth-based junior said today it had reached agreement with Resource Capital Fund for a share placement worth $3 million, priced at 0.05 cents per share.
RCF will emerge as Geopacific’s major shareholder once the placement is completed, with a 28 per cent stake.
At the same time as the placement, Geopacific said it would kick off a rights issue for existing shareholders, also priced at 0.05 cents, to raise an additional $3 million.
Patersons Securities will act as lead manager to the placement.
Finally, Geopacific said it had entered a convertible notes agreement with investors to raise $275,000.
The notes can be converted into ordinary shares at 4.5 cents each.
Newly-installed chairman Milan Jerkovic said the company was pleased with the support from investors.
Mr Jerkovic succeeds Charles Bass as chairman, who recently retired from the company’s board of directors.
“The company has secured strong funding support and will now undertake an aggressive exploration program and I am looking forward to achieving results from the company’s highly prospective footprints in Cambodia and Fiji,” Mr Jerkovic said in a statement.
At close of trade today, Geopacific shares were up 12.7 per cent, at 5.3 cents.
