Geopacific Resources has secured a controlling interest in Kula Gold after Kula’s largest shareholder Pacific Road accepted Geopacific’s increased takeover offer. This gives Geopacific majority ownership of the Woodlark Gold Project in Papua New Guinea.
Pacific Road held 37.2% of Kula and its acceptance of the increased offer now means that Kula’s two largest shareholders have accepted and Geopacific has 56.22% of Kula.
A Pacific Road spokesperson said, “We have been pleased to see the Woodlark Gold Project advance under Geopacific’s stewardship. They have brought the required technical and project management skills and are applying them well. We look forward to continued progress.”
The Woodlark project has been advanced by a joint venture between the two parties with Geopacific carrying out recent resource enhancement and optimisation work.
On May 1 2017 Geopacific made an off-market takeover bid for Kula Gold and increased its offer on July 27 with Kula shareholders to receive one Geopacific share for every 1.1 Kula shares.
Geopacific’s managing director Ron Heeks said, “Pacific Road’s acceptance gives us a controlling interest in Kula. We are pleased with this result and Pacific Road’s endorsement of Geopacific’s team and plans to move the Woodlark project towards production.
“We urge Kula shareholders to follow Pacific Road’s lead and accept the final increased offer.”