The agreement provides a loan of up to A$500,000 free from costs or interest.
The facility will mature in 12 months or another date agreed upon by the parties.
Geopacific may opt to set off all or a portion of the loan against the obligation under a farm-in agreement to apply for a placement of $300,000.
Kula's expenditure at its Woodlark Island gold project is funded by Geopacific under a farm-in agreement.
Geopacific owns 85% of Kula after a takeover in August.
