New Funds To Support Development Of Woodlark Gold Project
Geopacific Resources Limited (ASX: GPR) has successfully completed an A$140 million share placement to support its development of the Woodlark Gold Project on remote Woodlark Island in Papua New Guinea.
The Placement was strongly supported by existing institutional shareholders, complemented by significant demand from new major domestic and international investors. It has been cornerstoned by two of Geopacific’s current substantial shareholders, Tembo and DELPHI, and several leading domestic and international institutions. In addition, there was strong support in the Placement from Sprott Resource Lending and its affiliates, along with members of the Geopacific Board and Management.
Chairman, Ian Clyne said the transformational capital raising provides the equity funding component of the development capital required for the company’s Woodlark Gold Project.
The company continues to advance due diligence and negotiation of the terms of the funding facilities with its preferred debt provider, Sprott Private Resource Lending II L.P., with targeted completion at the end of Q1 2021.
“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 also 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 2020. 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 Q2 2021 and first gold expected in Q4 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 the Placement, which will be completed in two tranches, with the second tranche subject to shareholder approval, is a another milestone in the company’s journey to bring Woodlark into production/
“On joining the company in October 2020, the Woodlark Gold Project presented a unique opportunity to bring into production an exciting, high margin gold project, and also harness its significant exploration potential.
“We have since put in place two key steps towards development with the execution plan and now a significant equity fund raise.
“We look forward to putting investors funds to work to continue to create value as the team moves forward with the development of the Woodlark Gold Project and testing of the phenomenal
Treadstone Resource Partners acted as strategic and financial advisor and Corrs Chambers Westgrath acted as legal adviser to Geopacific in relation to the Placement. Petra Capital Pty Limited and Sprott Capital Partners LP acted as Joint Lead Managers and Joint Bookrunners to the Placement. Shaw and Partners acted as Broker to the Placement.
