ASX-listed mining and exploration company Geopacific Resources (ASX:GPR) has launched a fully underwritten non-renounceable $6 million entitlement offer to progress the Woodlark Gold Project in Papua New Guinea.
Under the entitlement offer, the company reports all eligible shareholders are being offered the opportunity to acquire 0.5756 new shares for every 1 share held at a price of $0.020 per share. This offer represents a discount of 23.1% over the last close price and a 16% discount to the theoretical ex rights price (TERP).
The entitlement offer is fully underwritten by major shareholder, Germany-based Deutsche Balaton (Delphi) and will be completed in 2 parts. The first part will consist of an accelerated offer to eligible institutional investors which opened 30 March and closes today. The second part consists of an offer to eligible retail investors, which opens on 6 April 2023 and is scheduled to close on 19 April 2023.
Geopacific reports the entitlement offer is non-renounceable, entitlements are not transferable, and there will be no trading rights on the Australian Securities Exchange (ASX). Independent Australian institutional stockbroking firm, Petra Capital, is also acting as lead manager to the entitlement offer.
Funds raised from the entitlement offer will be applied to the 2023 phase one study works, a geological and exploration targeting review, progressing the village relocation program, as well as working capital, and offer costs.
“We appreciate the support of our major shareholder, Delphi, in underwriting the capital raising via a structure that provides all shareholders the opportunity to participate”
Commenting on the entitlement offer, Geopacific Resources Chairman Andrew Bantock says: “We appreciate the support of our major shareholder, Delphi, in underwriting the capital raising via a structure that provides all shareholders the opportunity to participate.
The capital raising will allow Geopacific to continue the necessary technical programs to define the optimal development path for Woodlark, in preparedness for a new well-credentialled management team, the process for recruitment of which is ongoing.
On behalf of the board, I would like to thank all of our shareholders for their ongoing support. We look forward to the next exciting steps to deliver new impetus for the highly prospective Woodlark Gold Project.”
Geopacific reports eligible shareholders will be invited to participate in the institutional entitlement offer, which will close on 31 March 2023 with settlement scheduled for 13 April 2023.
Eligible shareholders can also apply in excess of their entitlement under the institutional shortfall bookbuild up to a maximum of 100% of their entitlement.
The company says retail shareholders with addresses in Australia or New Zealand on the record date will be invited to participate in the retail entitlement offer which opens on 6 April and is scheduled to close on 19 April 2023. Eligible retail shareholders will be able to apply in excess of their entitlement under the retail entitlement offer oversubscription facility up to a maximum of 100% of their entitlement.
Geopacific Resources is an ASX-listed mining and exploration company focused on developing the ‘high-grade’ Woodlark Gold Project in Papua New Guinea.
The Woodlark project hosts a total Mineral Resource Estimate (MRE) of 47.88 million tonnes @ 1g/t Au for 1.541 million ounces. The company notes 94% of this MRE is in the measured and indicated category.
Images: Geopacific Resources Ltd
