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Geopacific raises cash for Woodlark

28th March 2019

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – ASX-listed Geopacific Resources has raised A$4.3-million through a share placement to advance project financing for its Woodlark gold project, in Papua New Guinea.

The company on Thursday announced that it placed 510-million ordinary shares, at a price of 0.85c each.

The offer price represented a discount of 23% to the last closing price of Geopacific shares and a 24% discount to its five-day weighted average share price.

“We are delighted with the results of this placement. The company has a strong and supportive shareholder base, which has now had the opportunity to revitalize for the next stage of the company’s growth,” said MD Ron Heeks.

“At this inflection point for the company, as we advance financing due diligence for Woodlark, we also welcome new and supportive substantial shareholders onto the register.”

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.

Edited by Creamer Media Reporter

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