THE BOURSE WHISPERER: Geopacific Resources (ASX: GPR) has completed a $40 million share placement and is subsequently offering a Share Purchase Plan (SPP) to raise up to a further $5 million to eligible shareholders.
Geopacific Resources indicated the capital raising will allow the commencement of development activities at the company’s Woodlark gold project in Papua New Guinea.
The $40 million placement was made to Sophisticated and Professional Investors for 1,600 million fully paid ordinary shares at 2.5 cents per share.
The company also intends to offer a SPP, also at 2.5 cents per share to raise up to a further $5 million.
Geopacific is already funded to commence the first phase of development at Woodlark and move towards a complete project financing solution.
The company explained the net proceeds from the Placement and SPP will primarily be used for front end engineering design (FEED), project civil construction, relocation of the Kulumadau village, Woodlark mine camp upgrades, project financing costs and other working capital for project development and expansion activities.
The first phase of development is expected to de-risk project execution in preparation for the construction of the process plant and completion of project financing.
“The capital raising has provided an excellent result, with shareholders demonstrating their commitment to moving Woodlark into production,” Geopacific Resources managing director Ron Heeks said in the company’s announcement to the Australian Securities Exchange.
“All shareholders, new and existing, clearly understand the tasks and rewards ahead and we are delighted and appreciative of their strong support to begin the process of producing gold.
“The raising will allow the company to commence early site works in preparation for process plant construction which will enable gold production to be reached in a shorter timeframe.”