Geopacific Resources (ASX: GPR) has secured a significant investment of $2.9 million through a share placement from Lingbao Gold International Company, marking a new strategic partnership. The shares were issued at $0.021 each, reflecting an important milestone for Geopacific’s future growth.
Lingbao Gold
Lingbao Gold International, a wholly owned subsidiary of Lingbao Gold Group (HKG: 3330), operates as an integrated gold mining company based in the People’s Republic of China. The company specializes in gold mining, smelting, and refining, with operations spanning five major mining production bases and one smelting and processing enterprise.
Strategic Alignment and Project Potential
Peng Sun, the General Manager of Lingbao’s Overseas Business Division, expressed confidence in the Woodlark Gold Project, which Geopacific is currently developing. Sun described the project as a “promising” investment that aligns with Lingbao’s international strategic plans.
“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 stated.
Support from Deutsche Balaton Group
In addition to the new investment from Lingbao Gold, Geopacific Resources has received ongoing financial support from the Deutsche Balaton Group. The group, through 2Invest AG and Deutsche Balaton, is converting a portion of its bearer bonds into shares, applying $2.8 million of owed monies towards this conversion.
Pricing and Market Impact
The share placement and bond conversion were both executed at a price of $0.021 per share. This price represents an 8.7% discount to the last closing price and a 9.4% discount to the 30-day volume-weighted average price (VWAP), making it an attractive proposition for investors.
Funding Allocation and Project Advancements
The funds raised will be crucial in advancing and de-risking Geopacific’s Woodlark Gold Project in Papua New Guinea. Recent exploration efforts have identified high-priority target areas with substantial potential for economic mineralization. Geopacific is committed to continuing its drilling preparations to enhance and expand the current gold resource, which stands at 1.67 million ounces.
CEO’s Perspective on the Investment
James Fox, CEO of Geopacific Resources, emphasized that the strong backing from Lingbao Gold and Deutsche Balaton Group underscores the value of the Woodlark Gold Project.
“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 recognized,” Fox noted. He also mentioned plans for an upcoming site visit with representatives from Lingbao Gold in the coming weeks.
Utilization of Funds from Bond Conversion
The $2.8 million applied under the Balaton Group Bond Conversion will be used to reduce certain existing bearer bonds issued to 2Invest AG and Deutsche Balaton, further strengthening the company’s financial position.
Geopacific’s Future Focus
Geopacific Resources remains dedicated to the development and exploration of the Woodlark Gold Project, with a focus on unlocking the full potential of this promising site. The strategic investments and continued support from key stakeholders signal a robust future for the company as it advances its operations in Papua New Guinea.
