AFR: Petra launches ambitious $130m Geopacific Resources raising


Gold play Geopacific Resources is seeking to more than double its shares on issue as part of a $130 million equity raising on Thursday. Geopacific Resources had stockbroker Petra Capital selling the deal to potential investors on Thursday morning, looking for buyers at 42¢ a share.

The deal was priced at a 9.7 per cent discount to the last close.

Funds raised would be “applied to establishment capital, pre-production costs, exploration, debt establishment costs & working capital,” the term sheet said.

The two tranche placement would see Geopacific’s shares on issue increase to 485 million, from 175 million.

Geopacific has a shovel ready gold project, Woodlark, and expects first gold by the end of 2022. The company reckons it will cost $254.8 million to get the mine up and running, and the establishment capital could be paid back in 1.8 years, the term sheet said.

The placement was to be followed by a share purchase plan to raise up to another $10 million.

Source: The Australian Financial Review