Geopacific Resources raises game-changing $40m for 1.67Moz Woodlark Gold Project

Geopacific Resources raises game-changing $40m to develop Woodlark Gold Project

Pic via Getty Images

• Geopacific Resources raises $40 million in an entitlement offer supported by existing investor Deutsche Balaton Group and newcomer Patronus Resources

 

• Funds completion of 30,000m drilling program at 1.67Moz Woodlark Gold Project

• The large-scale program will feed into an updated definitive feasibility study set for release in late CY2025

Special Report: Geopacific Resources can now turbocharge development of its 1.67Moz Woodlark Gold Project thanks to a $40 million entitlement offer supported by Deutsche Balaton Group and Patronus Resources.

The game-changing funds will be used primarily for exploration for resource growth and to feed into an updated definitive feasibility study scheduled for completion in late CY2025.

Key activities Geopacific Resources (ASX:GPR) plan include:

• Starting a 30,000m drilling program, designed to extend known gold mineralisation and test new targets with the aim of growing Woodlark’s current 1.67 Moz gold mineral resource
• Completing an updated DFS, taking into account any new mineral resources and technical improvements; and
• Restarting front end engineering and design and documentation.

Unlocking potential

Geopacific CEO James Fox said: “Strong support for the entitlement offer will help unlock the significant underlying value and upside potential of the 1.67 Moz Woodlark Gold Project.

“The ongoing exploration review has identified numerous high-priority exploration targets with substantial resource growth potential.

“Over the next 18 months, a comprehensive near-mine and regional exploration drill program comprising approximately 5,000 metres of trenching, and 30,000 metres of RC and diamond drilling will test for extensions to known, high-grade, near-surface mineralisation, generating strong news-flow and share price catalysts along the way.”

“The recent study confirmed that the project is forecast to generate strong returns for its stakeholders over a long-life operation, highlighting the potential financial benefits of further resource growth,” he added.

“We look forward to continuing to engage and work with all our stakeholders including the Woodlark community, the PNG Government, and our strategic partners, to deliver an updated DFS by the end of CY2025 and recommence front end engineering and design work.”

Near-term appeal

A scoping study for Woodlark, released in July, forecast robust operating margins and significant free cash flow over 12 years with a rapid payback.

This was followed in August by GPR’s announcement of an increase in the project’s resource to 1.67 million ounces of gold thanks to compilation and interpretation of historic drilling at two satellite gold deposits.

GPR believes there is significant potential for even more resource growth based on its own drilling and reviews of previous exploration, particularly at two satellite deposits Great Northern and Wayai Creek, along with the Little MacKenzie target.

The mineralisation at Woodlark is commonly associated with large-scale porphyry copper-gold deposits, a style of geology known to host some of the world’s largest reservoirs of the yellow metal.

Adding to Woodlark’s near-term production appeal, key licences are already in place and plant engineering is more than 90% done.

The offer

Under the Taylor Collison led entitlement offer, all eligible shareholders can acquire 1.69 new shares for every one share hold at 7pm on 24 December (Sydney time). The offer is renounceable and the entitlements will be tradeable on the ASX.

The entitlement offer will be completed at the offer price of 2c per new share, which is a 9.1% discount to the closing price of GPR’s shares on 16 December 2024 and a 3.6% discount to the theoretical ex-rights price.

Deutsche Balaton Group is a German based existing investor and Patronus Resources (ASX:PTN) is a leading diversified exploration and development company with gold assets in WA and the Northern Territory.

This article was developed in collaboration with Geopacific Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.