Geopacific takes Woodlark, farewells Kula
PERTH (miningweekly.com) – Junior Geopacific Resources has struck a deal with fellow-listed Kula Gold to gain full ownership of the Woodlark gold project, in Papua New Guinea.
Under the terms of the agreement with Kula, Geopacific would issue 150-million of its own shares, and pay an estimated A$700 000 in cash to Kula, while also cancelling its entire existing 85% interest in the company.
Kula will cease to be a subsidiary of Geopacific and will pursue new opportunities, with the company using the cash payment to repay a A$680 000 loan from Geopacific.
“Acquiring 100% direct interest in Woodlark is a positive step in the project’s development pathway. The simplified ownership structure enhances its attractiveness to potential financiers and positions it to take advantage of the growing Australian dollar margin as projected revenues and most costs are to be in Australian dollars,” said Geopacific MD Ron Heeks.
A 2018 definitive feasibility study into the Woodlark project estimated that the project would require a capital investment of A$198.5-million, with the mine expected to produce 967 117 oz of gold over a 13-year mine life.
The Woodlark project is estimated to have a post-tax net present value of A$197-million and an internal rate of return of 29%, with post-tax free cash flow expected to be some A$343-million over the life of the mine.
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