Geopacific Resources (ASX: GPR) has entered into a bond subscription agreement with major shareholder Deutsche Balaton, which will provide $3.5 million of short-term, unsecured funding to the company.
The drawdown date is 24 October 2023 while the bond matures on 29 December 2023.
Total funds received will be $3.38 million, being 96.5% of the aggregate face value of the bearer bonds, and is issued with an interest rate of 7.5% per annum.
Geopacific Resources notes the funds will further advance the current phase one work program, which has been extended to capture the impact of the updated Kulumadau Mineral Resource and further refinements to key infrastructure placements.
The company says the overarching phase one objective is to determine the optimal development pathway for the Woodlark Gold Project.
Concurrently, the Geopacific is working towards finalising the appointment of a new permanent Chief Executive Officer, following which, it intends to undertake a capital raising to fund the next phase of its work program and repay the aforementioned short-term funding.
Write to Adam Orlando at Mining.com.au
Images: Geopacific Resources