Geopacific Resources Limited (ASX:GPR) Launches Entitlement Offer
Geopacific Resources launches a renounceable entitlement offer to raise A$40 million for its Woodlark Project development.
Entitlement Offer Overview
Geopacific Resources Limited (ASX:GPR) has announced a pro-rata renounceable entitlement offer aiming to raise up to A$40 million. Eligible shareholders will have the opportunity to subscribe for 1.69 new shares for every share held at an offer price of A$0.02 per new share, which represents a discount to the recent market price.
Utilisation of Funds
Proceeds from the entitlement offer will primarily be allocated to advancing the Woodlark Project. The funds will support exploration efforts, project development including the delivery of a Definitive Feasibility Study (DFS), and community relocation initiatives. Geopacific has identified key areas for investment such as technical studies and engineering design.
Project Highlights
The Woodlark Project currently hosts an updated Mineral Resource Estimate of 1.67 million ounces of gold and has significant exploration potential. The company has reported a strong project economic outlook, with the potential for substantial future cash flows once in development.
Executive Comments
CEO James Fox stated, “This offer represents an exciting opportunity for existing shareholders to increase their stake and support the continued advancement of the Woodlark Project.” The company aims to deliver the DFS by the end of 2025, further enhancing its operational capabilities.
Investment Risks
Investors are cautioned that investment in the new shares is speculative and does not guarantee returns. The company’s ability to execute its development plans is subject to various risks including commodity price fluctuations, exploration success, and obtaining necessary government approvals.
Key Dates
The entitlement offer opened on 31 December 2024 and will close on 17 January 2025. Key milestones, including trading of new shares, are outlined in the indicative timetable released alongside the announcement.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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