Voltaic Strategic Resources has acquired a 4.2% shareholding in Geopacific Resources, gaining strategic exposure to the Woodlark Gold Project in Papua New Guinea, a well-capitalised development with a 12-year mine life and significant exploration upside.
- Voltaic invests $2.65 million for 4.2% stake in Geopacific Resources
- Woodlark Gold Project holds 1.67 million ounces of gold resources
- Project backed by Deutsche Balaton/Delphi Group and Patronus Resources
- Geopacific raised $40 million to advance Woodlark development
- Woodlark project features a pre-tax NPV of A$625 million and 12-year mine life
Voltaic's Strategic Pivot
Voltaic Strategic Resources Limited (ASX: VSR) has taken a decisive step to diversify its portfolio by acquiring a 4.2% equity stake in Geopacific Resources Limited (ASX: GPR). The $2.65 million investment, made through a shortfall entitlement offer, positions Voltaic as a strategic partner in the Woodlark Gold Project, a mature and well-capitalised gold development located in Papua New Guinea.
This move marks a shift for Voltaic from early-stage exploration towards exposure to a near-term production asset with proven economic feasibility. Chairman Daniel Raihani highlighted the project's low enterprise value and substantial upside potential as key attractions, especially alongside heavyweight investors Deutsche Balaton/Delphi Group and Patronus Resources.
Woodlark Gold Project: A De-risked Opportunity
The Woodlark Gold Project boasts a significant mineral resource of approximately 1.67 million ounces of gold, predominantly in the Measured and Indicated categories. Located on Woodlark Island in Papua New Guinea's Milne Bay Province, the project benefits from decades of regional mining activity, existing infrastructure, and a skilled local workforce.
Geopacific's recent scoping study underscores the project's robust economics, with a pre-tax net present value (NPV) of A$625 million and an internal rate of return (IRR) of 40.5%. The planned 12-year open-pit operation features low strip ratios and capital costs estimated at A$326 million, targeting production of 1.14 million ounces of gold at all-in sustaining costs of A$1,534 per ounce.
Capital Raising and Growth Prospects
Geopacific successfully raised $40 million through its entitlement offer, including shortfall subscriptions, to fund exploration, project development, engineering, community relocation, and working capital. Voltaic's participation in this raise not only secures its stake but also aligns it with major shareholders who bring operational expertise and financial backing.
Looking ahead, Geopacific plans an extensive 2025 exploration program involving 30,000 meters of reverse circulation and diamond drilling, alongside trenching, aimed at expanding the resource base and testing new targets. This exploration upside could further enhance the project's value and longevity.
Implications for Voltaic
With this investment, Voltaic retains a healthy cash reserve of $2.5 million, allowing flexibility to pursue additional opportunities or support ongoing exploration within its Australian tenements. The strategic stake in Geopacific offers Voltaic exposure to a de-risked gold development without the immediate need for operational capital or resources, potentially smoothing its path to value creation amid challenging market conditions for early-stage explorers.
Overall, Voltaic’s move reflects a pragmatic approach to portfolio management, balancing exploration ambitions with exposure to established projects that promise near-term returns and long-term growth.
Bottom Line?
Voltaic’s stake in Geopacific could be a catalyst for growth, but the unfolding development and exploration results at Woodlark will be critical to watch.
Questions in the middle?
- How will Geopacific’s 2025 exploration results impact the Woodlark resource and project valuation?
- What role will Voltaic play in Geopacific’s strategic decisions moving forward?
- How might gold price fluctuations affect the economic viability of the Woodlark project?