Geopacific in $3m rights issue

Shares in Geopacific Resources were up 9.3 per cent today as the company announced a $3 million rights issue, with plans to use the funds to step up exploration activity at its Cambodian Kou Sa project.

The project, which is 15 per cent owned by the Royal Group, is targeted to find copper and gold ores.

It follows the announcement of a $5.5 million funding package late last month, with the remaining $2.5 million to be raised by placement to sophisticated investors following today’s $3 million announcement.

The issue will be underwritten by BBY, and will be priced at 5.7 cents per share.

Existing shareholders will be offered a new share for every six of the company's shares they control.

Geopacific closed at 5.9 cents per share.