18/08/2016 - 10:19

Geopacific taps investors for $15m

18/08/2016 - 10:19

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Local explorer Geopacific Resources has kicked off a $15 million capital raising to fund the earn-in and development of the Woodlark gold project in Papua New Guinea.

Geopacific taps investors for $15m
Geopacific managing director Ron Heeks.

Local explorer Geopacific Resources has kicked off a $15 million capital raising to fund the earn-in and development of the Woodlark gold project in Papua New Guinea.

Geopacific raised the funds through the placement of 350 million shares at 4.3 cents each, with firm commitments received from its major shareholders, Tembo Capital and Resource Capital Funds.

Geopacific last month entered into an agreement to farm-in to Kula Gold’s Woodlark project, with the company targeting an initial 75 per cent stake.

The funds raised today will be used to exercise an option to acquire a further 5 per cent interest in the project, as well as for development work.

Geopacific reaffirmed that it was committed to continuing work at its Kou Sa copper-gold project in Cambodia and its Fijian gold projects.

Managing director Ron Heeks said the company had the right strategy to transition from exploration to mining and return value to shareholders.

“The support we have received in this capital raising confirms that the market agrees,” he said.

“The Woodlark project is a game changer for Geopacific and we plan to deliver.”

Petra Capital brokered the raising.

Geopacific shares were 1.9 per cent lower to 5 cents each at 10:20am.

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