Geopacific Resources Limited is now entitled to 5 per cent of the Woodlark Gold Project after announcing that it will proceed with tranche two of the Earn-in agreement with Kula Gold Limited.
This Earn-in arrangement with Kula Gold Limited is to acquire up to 80 per cent of the Woodlark Gold Project.
Kula retains a 95 per cent share following Geopacific’s entitlement to a 5% share on the election to proceed to the second tranche of the agreement and the execution of the formal agreements.
“The agreements are complete and we are delivering our development plan for Woodlark as promised. This is another step in the right direction of moving Woodlark aling the path to production,” says Geopacific Managing Director, Ron Heeks,
Shares are being issued to Geopacific with immediate effect while Heeks, joins the board of Woodlark Mining Limited (WML), the company that holds the licenses for Woodlark.
Geopacific says its focus is to maximise the development potential of Woodlark in the shortest possible timeframe, after which it will look toward further exploration potential.
The current resource for Woodlark is 45.1 million tonnes at 1.50 grams per tonne of gold for 2.12 million ounces, including 26.7 million tonnes for 1.32 million ounces of measured and indicated mineralization.
The agreements have been executed in accordance with and the replace the Binding Term Sheet entered into on July 7, 2016.
Under the agreement, Geopacific has committed to the second trance and will sole fund by spending $8 million or achieving the target of 1.2 million ounces of gold Ore Reserves, in a two-year period from their election to proceed in October 2016, in return for an earn-in up to 51% in WIGP.
Should Geopacific proceed to the third farm-in period they will sole fund WIGP by spending a further $10 million, over a further two-year period, to progress Woodlark to bankable stage and in so doing earn up to 75% of WIGP. The agreement provides for Geopacific to fund Kula through to production.
Geopacific will spend up to $18.65m over three Tranches in order to earn an interest of up to 75% in the Woodlark Gold Project.