Geopacific Resources Limited ('Geopacific' or 'the Company'; ASX: GPR) advised on 11 November 2021 that all non-essential activities on the Woodlark Gold Project ('Project') would be deferred until Q1/Q2 CY22 along with finalisation of the remaining key development contracts.

This decision was taken to enable the Company to focus on enhancing project management oversight and to methodically review the impact of recent unseasonal weather and COVID-19 Pandemic related delays, along with the remaining development uncertainties noted in the Company's announcement on 11 November 2021 (wharf, tailings line and Community Relocation Program), on the overall Project schedule and the consequent impact on the budget. The Company continues to work on a critical path analysis to minimise such impact. Existing work packages key to the delivery of the Project continue to advance, including the construction of the permanent camp, exploration drilling, community relocation, engineering and the process plant ground preparation. The completion of these activities will further de-risk the Project delivery and minimise any delays.

The Company is well positioned to fund these activities with A$77.2m of unrestricted net cash reserves1. The decision to defer all non-essential activities, and the need to review and resolve the remaining development uncertainties and consequent impact on the Project schedule and budget, have necessarily involved discussions with the Lender to the Project (Sprott Private Resource Lending II (Co), Inc. ('Sprott')). Following these discussions, Geopacific and Sprott have agreed to make certain amendments to the terms and conditions of the Facility and the Stream Agreement. The parties have entered into an Interim Agreement which outlines these proposed amendments, which are required to be incorporated into the full form Agreements by 6 December 2021.

Contact:

Tel: +61 8 6143 1820

Email: info@geopacific.com.au

Web: http://www.geopacific.com.au

(C) 2021 Electronic News Publishing, source ENP Newswire