Through a share placement, Gold developer Geopacific Resources has raised A$140 million to invest for the development of the Woodlark gold project in Papua New Guinea.
The placement will be finished in two tranches. The first tranche consists of 43.7-million shares with a cost of 42c each for an initial A$18.4-million under the existing placement company of the firm. The second tranche of 289.6-million shares, to raise A$121.6-million is subject for the approval of the shareholder.
Besides the capital raise, Geopacific also plans to have a share purchase plan (SPP) - also costing 42c each - which allows shareholders to subscribe for up to A$30,000 of new shares in the firm - to raise A$10-million.
A meeting is scheduled for February 3. The SPP closes on February 10.
“We are delighted with the strong support for the placement, welcoming a number of specialist Australian and international resource investment institutions to the register,” said chairperson Ian Clyne. “With the equity raising complete, the company intends to finalise the funding arrangement with Sprott Resource Lending, as a preferred project financier, with a view to commencing construction in the second quarter of 2021, and first gold expected in the fourth quarter of 2022.”
This project is anticipated to produce 980,000 oz over its 13-year mine life and to have an internal rate return of 34% and a net present value of $347-million.
