Kula Gold Limited has sold the Woodlark Gold Project to Geopacific Resources Limited (ASX) in return for $150 million of GPR’s Consideration Shares and an estimated $700,000 from canceling it’s 85 per cent shareholding in the company.
Kula intends to ultimately distribute the Consideration Shares pro-rata to its shareholders once Geopacific Kula shares are cancelled.
Geopacific has obtained a waiver from Listing Rule 10.7 to permit it to pay the above consideration under the Proposed Transaction. Accordingly, none of the Consideration Shares will be restricted from trading on the ASX once issued.
Kula will cease to be a subsidiary of Geopacific with directors Messrs Heeks and Smith both stepping down from the Kula board.