Geopacific raises $4.3m, loses major shareholder

Geopacific Resources has raised $4.3 million via a share placement, with the funds set to advance due diligence in relation to the financing of its $198.5 million Woodlark gold project.

This includes finalising the independent technical studies on behalf of potential debt lenders and advancing the executive strategy for project development, which includes the plant and infrastructure.

Under the placement, Geopacific issued 510 million shares at a price of 0.85 cents each, representing a 24 per cent discount to its five-day volume-weighted average price.

Petra Capital acted as exclusive manager and bookrunner to the placement.

In conjunction with the placement, Resource Capital funds divested the 17 per cent holding it had in Geopacific, which equates to around $4.6 million.

Geopacific managing director Ron Heeks said the company had a strong and supportive shareholder base, which would see the next stage of the company’s growth.

“Woodlark is a high-margin project with significant potential at the cusp of development,” he said.

The Claremont-based company, which has Milan Jerkovic serving as its non-executive chairman, released its definitive feasibility study for the project in November, revealing a capital expenditure figure $18.5 million higher than its pre-feasibility study estimation from March.

The project is located on Woodlark Island, located 600 kilometres east of Papua New Guinea’s capital, Port Moresby.

Geopacific is targeting board approval late this year, with construction estimated to commence the following year.