October 15, 2024
Gold Investing

Geopacific Resources gets $2.9 million injection from Lingbao Gold


Geopacific Resources (ASX:GPR) has received a firm commitment from a new strategic investor, Lingbao Gold International Company, for a $2.9 million share placement at $0.021 per share. 

Lingbao Gold International is a wholly owned subsidiary of Lingbao Gold Group (HKG:3330). Lingbao Gold is an integrated gold mining company that lies in the People’s Republic of China

The company engages in gold mining, smelting, and refining across five major mining production bases, and one smelting and processing enterprise. 

Lingbao overseas business division general manager Peng Sun says Geopacific’s Woodlark Gold Project is considered a “promising” investment for the company and is a key step in its international strategic plan. 

“We hope to strengthen our partnership with the Geopacific team and collaborate to promote the smooth progress of the project by participating in this private placement,” Sun says. 

In conjunction, Geopacific Resources, which has a market capitalisation of $20.97 million, has received ongoing support from the Deutsche Balaton Group, as 2Invest AG and Deutsche Balaton are converting a portion of certain bearer bonds by applying $2.8 million of monies owing to subscribe for shares. 

The issue price of $0.021 per share under the placement and the bond conversion represents a 8.7% discount to the last closing price and a 9.4% discount to the 30-day volume weighted average price. 

The funds raised from the placement will be used to advance and de-risk the company’s Woodlark Gold Project, where recent exploration highlighted high priority target areas with strong potential to host material economic mineralisation. 

Geopacific is focused on continuing drilling preparations to upgrade and grow the existing 1.67 million ounce gold resource. 

CEO James Fox says securing support from these companies is a “strong” endorsement of Woodlark’s value. 

“Having recently identified numerous highly prospective gold targets with scope for further resource inventory growth, we believe there is a clear pathway for significant shareholder value creation that continues to be recognised,” Fox says. 

“We look forward to completing a site visit with Langbao over the coming weeks.”

Funds applied under the Balaton Group Bond Conversion, totalling $2.8 million, will be used to pay down certain existing bearer bonds on issue to 2Invest AG and Deutsche Balaton. 

Geopacific Resources is focused on the development of the Woodlark Gold Project in Papua New Guinea, and unlocking the exploration potential of the project.

Write to Aaliyah Rogan at Mining.com.au   

Images: Geopacific Resources





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