Geopacific Secures A$40m to Accelerate Woodlark Gold Expansion
Geopacific Resources has successfully closed a fully subscribed A$40 million entitlement offer, positioning the company to advance its Woodlark Gold Project with a major drilling program and updated feasibility study.
- A$40 million raised through fully committed pro-rata renounceable entitlement offer
- Funds to support 30,000m drilling program and updated Definitive Feasibility Study by late 2025
- Woodlark Gold Project mineral resource stands at 1.67 million ounces
- Substantial shareholder backing with Deutsche Balaton and Patronus Resources holding 61.8% post-offer
- Drill planning and site preparation underway, targeting resource growth and technical improvements
Capital Raise Completes Successfully
Geopacific Resources Limited (ASX: GPR) has announced the successful completion of its A$40 million pro-rata renounceable entitlement offer, which closed on 17 January 2025. The offer was strongly supported by existing shareholders, with over A$20 million subscribed directly and the remaining shortfall underwritten and allocated by Taylor Collison Limited and VS Capital. This capital injection provides the company with the financial firepower to accelerate development activities at its flagship Woodlark Gold Project in Papua New Guinea.
Strategic Deployment of Funds
The proceeds from the entitlement offer are earmarked for a comprehensive 30,000-metre drilling campaign aimed at expanding the current mineral resource base, which stands at 1.67 million ounces of gold. This drilling program is a critical step toward updating the Definitive Feasibility Study (DFS), scheduled for completion by the end of calendar year 2025. Alongside exploration, funds will also support the recommencement of front-end engineering and design work, bond repayments, and general working capital needs.
Project Outlook and Shareholder Confidence
CEO James Fox highlighted the strong shareholder backing as a vote of confidence in the project’s long-term potential. The Woodlark Gold Project’s recent scoping study forecasted robust financial returns, underpinning the company’s strategy to unlock further value through resource growth and technical enhancements. The company plans to mobilize earthmoving equipment this quarter to upgrade roads and conduct trenching ahead of the drilling program commencing in May.
Shareholder Structure and Market Implications
Following the allotment of new shares, Deutsche Balaton Aktiengesellschaft and its associates, including Patronus Resources Ltd, will collectively hold approximately 61.8% of Geopacific’s issued shares, with Patronus accounting for 15.7%. This consolidation of ownership signals strong institutional support, which may provide stability as the company advances its development milestones. The planned drilling and DFS updates are expected to generate a steady stream of news flow and potential catalysts for the share price over the coming months.
Looking Ahead
With exploration targets identified and a clear timetable for project advancement, Geopacific is poised to enhance the Woodlark Gold Project’s resource profile and economic viability. The next 18 months will be pivotal as the company delivers on its growth strategy, balancing operational execution with stakeholder engagement in Papua New Guinea.
Bottom Line?
Geopacific’s capital raise sets the stage for a transformative phase at Woodlark, but execution risks remain as drilling results and DFS updates unfold.
Questions in the middle?
- Will the upcoming drilling program significantly increase Woodlark’s gold resource beyond 1.67 million ounces?
- How will the updated Definitive Feasibility Study impact project economics and financing options?
- What are the potential operational or geopolitical risks in Papua New Guinea that could affect project timelines?
