Geopacific’s $40M Raise Puts Woodlark Development on Fast Track Amid Regulatory Uncertainties
Geopacific Resources has successfully raised $40 million through a renounceable entitlement offer to advance its 1.67 million ounce Woodlark Gold Project, with a major drilling campaign and updated feasibility study planned for 2025.
- Completed $40 million entitlement offer strongly supported by existing and new investors
- Planned 30,000m drilling program to commence May 2025 targeting resource growth
- Updated Definitive Feasibility Study (DFS) targeted for completion by end of 2025
- Ongoing community relocation progressing with 73% of buildings completed
- Full repayment of bonds post quarter end strengthens balance sheet
Capital Raise to Drive Growth
Geopacific Resources Limited (ASX: GPR) has announced a successful $40 million renounceable pro-rata entitlement offer, closing post quarter end with strong backing from existing shareholders including the Deutsche Balaton group, and new investors such as Patronus Resources Limited. The capital injection is earmarked to fund an ambitious 18-month program focused on expanding and advancing the Woodlark Gold Project in Papua New Guinea.
The funds will primarily support a comprehensive near-mine and regional drilling campaign of approximately 30,000 metres, set to commence in May 2025. This drilling aims to extend known gold mineralisation and explore new targets, potentially increasing the project's mineral resources beyond the current 1.67 million ounces.
Project Development and Technical Work
Alongside exploration, Geopacific plans to complete an updated Definitive Feasibility Study (DFS) by the end of calendar year 2025. This study will incorporate new mineral resource data and technical improvements, including metallurgical test work and geotechnical assessments, to refine project design and economics. Front end engineering and design (FEED) activities will also recommence, focusing on critical infrastructure such as the wharf, camp, tailings management, and processing plant.
Notably, the company has relocated key milling equipment to a bonded warehouse in China, preserving these assets cost-effectively until required for project development.
Community Engagement and Sustainability
Geopacific continues to advance its community relocation program on Woodlark Island, with 182 buildings completed, representing approximately 73% of the agreed scope. This initiative not only supports local employment but also aims to improve living standards and facilities. The company maintains a strong safety record, with no lost time injuries recorded over the past 53 months.
Environmental monitoring remains ongoing with no incidents reported, and technical studies are progressing to support updated environmental approvals aligned with the project's throughput expansion plans.
Financial Position and Outlook
As of 31 December 2024, Geopacific held $1.79 million in cash, $17 million in long lead equipment assets, and a $2.75 million GST receivable from Papua New Guinea tax authorities. Post quarter, the company fully repaid $3.21 million in bonds to Deutsche Balaton and 2Invest, further strengthening its balance sheet.
The company’s strategic focus on resource growth and project advancement, backed by fresh capital and strong shareholder support, positions it well to unlock value from the Woodlark Gold Project. The upcoming drilling results and DFS will be critical milestones to watch.
Bottom Line?
With funding secured and a clear development roadmap, Geopacific is poised to transform Woodlark into a long-life, high-return gold operation.
Questions in the middle?
- Will the planned drilling program materially increase Woodlark’s mineral resources beyond 1.67 million ounces?
- How will updated DFS outcomes affect project economics and timelines for production?
- What are the potential risks related to the PNG GST receivable and regulatory approvals?
