Geopacific Resources has acquired a majority stake in Kula Gold after the takeover target’s largest shareholder accepted Geopacific’s recently increased offer.
Perth-based Geopacific announced this morning that Pacific Road, which owns a 37.2 per cent stake in Kula, had accepted the takeover offer, increasing Geopacific’s voting power in Kula to 56.2 per cent after another major shareholder already accepted the offer.
“We have been very pleased to see the Woodlark gold project advance under Geopacific’s stewardship,” a Pacific Road spokesperson said.
“They have brought the required technical and project management skills and are applying them as well.
“We look forward to continued progress.”
Geopacific and Kula are joint venture partners in the Woodlark project in Paua New Guinea.
In April, Geopacific offered one of its shares for every 1.47 Kula shares to wholly acquire the target; however, the offer was increased last week to one Geopacific share for every 1.1 Kula shares.
Geopacific managing director Ron Heeks said Pacific Road’s acceptance gave the company a controlling interest in Kula.
“We are pleased with this result and Pacific Road’s endorsement of Geopacific’s team and plans to move the Woodlark gold project towards production,” he said.
“We urge Kula shareholders to follow Pacific Road’s lead and accept the increased offer.”
The deadline has also been extended to September 1.
Shares in Geopacific were unchanged at 3 cents each at 1:20pm. Kula shares were unchanged at 2.7 cents each.