Geopacific Resources Ltd. outlined plans to raise A$40 million through a share placement and an additional A$5 million through a share purchase plan.
The Australia-listed explorer will use the proceeds to fund the first phase of development at its Woodlark gold project in Papua New Guinea, including front-end engineering design and project civil construction, it said Oct. 21.
The company expects phase-one development to de-risk project execution in preparation for building a process plant and completing project financing.
The placement comprises 1.60 billion shares at 2.5 Australian cents each in two tranches, with the first tranche expected to raise A$17.2 million and the second tranche targeting A$22.8 million. The second tranche is subject to shareholder approval, with a meeting scheduled for early December.
Geopacific Resources said the share purchase plan will be undertaken at the same price, allowing eligible shareholders to acquire up to A$30,000 of new shares, with a record date of Oct. 18.
Managing Director Ron Heeks said the financing will enable the company to start early site work ahead of process plant construction, shortening the time frame to initial gold production.
In addition, the company will seek shareholder approval in December for a 25-for-1 share consolidation to take effect after the placement is complete.
Geopacific Resources obtained an extension from the government in September to complete construction and commissioning of the processing facility at Woodlark.