Voltaic Strategic Resources (ASX: VSR) has participated in a shortfall entitlement offer to acquire approximately 4.2% of the shares in Geopacific Resources (ASX: GPR), operator of the historic Woodlark Gold Project in Papua New Guinea.
For a total consideration of $2.653 million, the GPR entitlement offer was Sub-underwritten by Deutsche Balaton Aktiengesellschaft and associates and Patronus Resources Ltd (ASX:PTN) who will be substantial holders of GPR.
Voltaic’s Chairman, Daniel Raihani, said in light of challenging market conditions for early-stage exploration, this strategic investment represents a decisive pivot toward value creation through exposure to a mature gold development project with near-term production potential.
“This investment opportunity in a significant gold project in Papua New Guinea that has a 1.67 Moz resource with substantial exploration potential and at such a low enterprise value represents an excellent investment for VSR,” Mr Raihani said.
“The company is very comfortable to make this strategic investment alongside a major fund (Deutsche Balaton / Delphi group) and gold mine operator who share the view that the Woodlark Island Gold Project has significant upside and is well progressed along the development timeline.
“After considerable efforts to identify a stand-alone mature exploration project, an investment in GPR places VSR as a strategic investor in a project that meets the Company’s previous search criteria.
“VSR will retain cash reserves of $2.5 million following the completion of its investment in GPR. These funds may be allocated to other investment opportunities or used to support ongoing exploration activities on its current tenements in Australia which are all currently under review.”
The Woodlark Island Gold Project is an open-pit mining development project located on Woodlark Island in PNG’s Milne Bay Province.
The project is owned and operated by Geopacific Resources Limited through its subsidiary, Woodlark Mining Limited, and it has identified significant resources at Kulumadau, Busai, Munasi and Woodlark King with significant other exploration potential available within the company’s mineral exploration tenure.
Woodlark Island is located approximately 600 km east of Port Moresby in the Solomon Sea and Milne Bay Province of Papua New Guinea. The island is 65 km by 25 km with an area of 850 sq. km and has access by air via private charter to Guasopa Airstrip and small cargo and passenger vessels from Alotau.