Geopacific Resources Ltd (ASX:GPR) has executed amended finance terms for the development of the Woodlark Gold Project, which is materially consistent with the terms of the interim agreement.
The lender, Sprott Private Resource Lending, remains supportive as a funding partner for the Woodlark Project in Papua New Guinea, with a fully committed financing package.
The amended finance terms result in a substantial interest savings of US$600,000 per month until the lending commitments are re-drawn by August 31, 2022, at the latest, along with significant reductions to the prepayment and termination obligations under the agreements.
Both parties have now entered amendments to the facility and the stream agreement, materially consistent with interim agreement announced on November 19, 2021.
In the meantime, a work program to review the project schedule and cost estimate by January 31, 2022 — as required under the amended finance terms — is continuing.
Further details
In addition, by finalising the amendments to the agreements, the following points were clarified and agreed upon:
➢ The funding for the project will be drawn and spent in the following order: existing committed equity, Gold Stream deposit and facility drawdown in tranches;
➢ The drawdown of the stream deposit and the first drawdown under the facility agreement, which have now been prepaid/repaid to Sprott, must be completed by August 31, 2022, or Sprott's facilities under the agreements will be cancelled. This provides time for the company to methodically review all remaining project development uncertainties; and
➢ All remaining material contracts for the project development — including the main construction contract with GR Engineering Services, the construction contract for the wharf, the deep sea tailings contract and the mining services contract — are required to be executed by March 31, 2022, and the wharf is required to be completed by May 31, 2022.