GEOPACIFIC Resources Ltd will raise AU$140 million (K363.68mil) placement (equity) to fund the development of the Woodlark gold project in Milne Bay.
The mine developer announced to the market yesterday that its board was happy that the successful completion of the amount would see an offer price of AU$0.42 (K1.09) per share (issue price).
With the equity, the company believes the construction phase will begin in the second quarter of next year with gold production to start in the fourth quarter of 2022.
It said the placement was supported by existing institutional shareholders, complemented by significant demand from new major domestic and international investors.
Chairman Ian Clyne said: “We are delighted with the strong support for the placement, welcoming a number of specialist Australian and international resource investment institutions to the register.
“On behalf of the board, I would like to thank our existing shareholders for their ongoing support.
“The board and management team worked tirelessly to bring the project execution update to market in late November.
“With the equity capital raising complete, the company intends to finalise the funding arrangements with Sprott Resource Lending, as preferred project financier, with a view to commencing construction in quarter two 2021 and first gold expected in quarter four 2022.
“Geopacific remains fully committed to successfully delivering the Woodlark gold project to the benefit of its shareholders and all stakeholders.”
Chief executive officer Tim Richards said: “On joining the company in October, the Woodlark gold project presented a unique opportunity to bring into production an exciting, high margin project and harness its significant exploration potential.”
TheNational/PacificMiningWatch