Australian-listed gold producer St Barbara Ltd has become a substantial shareholder in Geopacific Resources Ltd after acquiring a 14.4% strategic interest, strengthening ties between two companies with deep connections to Papua New Guinea’s mining sector.
The deal, completed through a transaction with Patronus Resources Ltd, saw St Barbara acquire 458.6 million Geopacific shares in exchange for returning 158.1 million Patronus shares. As a result, St Barbara now holds a 14.4% stake in Geopacific, while Patronus retains an interest of around 41 million shares.
The move aligns St Barbara, operator of the Simberi Gold Mine in PNG’s New Ireland Province, with Geopacific’s 100% owned 1.67 million-ounce Woodlark Gold Project in Milne Bay Province. Industry analysts say the partnership adds credibility and technical depth to Geopacific’s plans as it pushes forward with development of the Woodlark project.
“This transaction brings onto Geopacific’s register an established Papua New Guinea gold producer with deep operational expertise in the region,” the company said in its announcement.
Geopacific Chief Executive James Fox welcomed the deal, noting the value of St Barbara’s regional experience.
“We are delighted to welcome St Barbara onto our register as a substantial and strategic shareholder. Their proven operating experience in PNG through the Simberi Gold Mine brings valuable local knowledge and technical expertise as we continue to advance the 1.67 Moz Woodlark Gold Project. Importantly, this transaction also delivers a strategically aligned shareholder base for Geopacific,” Fox said.
The deal also reflects a broader trend of consolidation and collaboration in Papua New Guinea’s resource sector, where established operators and junior explorers are working together to manage risks, leverage local knowledge and ensure projects move forward despite market volatility.
For Geopacific, the addition of St Barbara as a shareholder marks a significant step as it seeks to build momentum behind Woodlark, a project seen as both technically promising and socially significant for Milne Bay communities.
Woodlark is an advanced gold project with significant exploration upside.
Geopacific Resources is focused on the development of the Woodlark Gold Project in PNG and unlocking the significant exploration potential of the project.
According to Geopacific Resources’ ASX announcement of 13 August 2024, titled “Mineral Resource increased to 1.67 Moz”, the Woodlark Gold Project hosts a total Mineral Resource of 48.3 million tonnes at 1.07 grams per tonne gold, for 1.67 million ounces of contained gold.
The estimate, reported under the JORC Code, was calculated using a cut-off grade of 0.4 g/t gold, consistent with the assumed open-pit mining method.
