Spartan Resources has completed a A$220m ($141.7m) institutional placement to accelerate the recommencement of operations at its Dalgaranga gold project in Western Australia.
The placement drew firm commitments from domestic and international resource-focused institutional investors, including support from Spartan Resources’ largest shareholder, Ramelius Resources.
Following the placement, Ramelius Resources increased its pro-forma ownership in Spartan Resources to 19.9%.
The placement was priced at A$1.32 ($0.85) per share. As a result, approximately 166.7 million new Spartan Resources shares were issued, equivalent to 15% of the company’s pre-existing shares.
Proceeds from the placement, combined with Spartan Resources’ existing unaudited cash balance, will result in a pro-forma cash position of A$290m ($186.8m). These funds will be allocated over the next 18-24 months to support key initiatives at the Dalgaranga project.
Of the total, A$130m ($83.7m) is designated for underground mine development, including A$106m ($68.3m) for 11,000m of underground development planned for 2025 and 2026.
A further A$21m ($13.5m) is allocated for underground in-fill and extensional drilling, and A$21.5m ($13.85m) for an expanded surface drilling campaign targeting extensions at the Gilbey’s Complex.
Infrastructure upgrades, including a paste plant and mill modifications such as a ball mill and grinding circuit enhancements, will be supported by A$70m ($45m) to improve operational readiness over the next 12-18 months.
The remaining funds will cover corporate and working capital needs, feasibility studies, and a partial buy-back of a 2.5% royalty on the gold project.
Spartan Resources interim executive chairman Simon Lawson said: “The proceeds significantly strengthen our balance sheet, giving us a pro-forma cash position of $290 million with no debt.
“This means we can execute our development strategy while at the same time unlocking the full potential of the Dalgaranga Gold Project through continued aggressive exploration.”
Located in the Murchison region, the Dalgaranga gold project comprises a fully developed gold mining operation, which is presently on care and maintenance. The project also includes a significant exploration landholding, providing scope for new discoveries.
The Dalgaranga gold mine was initially commissioned in 2018.
