Petra launches ambitious $130m Geopacific Resources raisingSarah...

Petra launches ambitious $130m Geopacific Resources raisingSarah Thompson, Anthony Macdonald and Tim BoydDec 10, 2020 – 8.33am

Gold play Geopacific Resources is seeking to more than double its shares on issue as part of a $130 million equity raising on Thursday.Street Talk. Jim RiceGeopacific 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 establishmentcapital, pre-production costs, exploration, debtestablishment costs & working capital," the term sheet said.Street Talk flagged the raising on Wednesday afternoon.

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.

Petra and fellow lead manager Sprott Capital were calling for bids by 2pm Thursday.The placement was to be followed by a share purchase plan to raise up to another $10 million.