Gold explorer Geopacific Resources (ASX:GPR) is set to pocket a fresh $1.8 million through a new short-term bond subscription agreement with 2Invest AG, a member of major Geopacific shareholder Deutsche Balaton (BBHK:HM).
The $16.43 million market capitalisation company plans to use the funds, which amount to $1.73 million after costs, to further advance exploration work at its flagship Woodlark Gold Project in Papua New Guinea as its management team works on the recapitalisation of the company.
The new unsecured bond deal comes with an interest rate of 7.5% per annum and can be drawn down via 4 bearer bonds at the election of Geopacific any time before a maturity date of 29 March 2024.
The new deal follows an initial $3.5 million bond subscription agreement signed between Geopacific and 2Invest AG back in October 2022.
On December 27, Geopacific announced that the bond issuer had agreed to extend the maturity date of this agreement to 29 March 2024 for a 4% prolongation fee. For reference, the $3.5 million arrangement was initially set to mature on 29 December.
Geopacific Resources said back in October that its overarching phase one objective for Woodlark was to determine the project’s optimal development pathway.
In November, the company appointed experienced mining executive and geologist James Fox as its new CEO. The company said Fox would help lead the company through its next chapter of growth.
Geopacific Resources had roughly $2.26 million cash and cash equivalents at hand as of 30 September 2023, according to its latest quarterly financial report.
Write to Joshua Smith at Mining.com.au
Images: Geopacific Resources
