Spartan resources (ASX:SPR) has secured $220 million in funding through an institutional placement to accelerate the restart of operations at its Dalgaranga Gold Project in Western Australia. The placement, conducted at $1.32 per share, received strong support from resource-conscious domestic and international investors. Specifically, Ramelius Resources (ASX:RMS)Spartan’s largest shareholder, increased its stake to 19.9% through the offering.
The funds will support underground mine development at the high-grade Never Never and Pepper deposits, along with infrastructure upgrades and mill modifications. The company also plans to launch an aggressive drilling campaign to expand resources at the Dalgaranga site, including extensions to the wider Gilbey Complex.
Spartan’s interim executive chairman, Simon Lawson, described the capital raising as critical to the company’s growth. “This capital raising puts us firmly on track to restart production and become the next major mid-tier high-end gold producer on the ASX,” Lawson said. “The proceeds will enable us to improve the state of operational readiness at Dalgaranga and unlock its full potential through continued aggressive exploration.”
The Dalgaranga Gold Project, 65km northwest of Mount Magnet, holds a combined high-grade mineral resource estimate of 2.32 million ounces at an average grade of 9.32 g/t gold from its Never Never deposits and Pepper. Spartan’s near-term plans include a feasibility study for the reboot, expected by mid-2025, with a final investment decision anticipated soon after.
The financing also leaves Spartan well capitalized, with a pro forma cash position of $290 million and no debt. The issuance of the placement shares is scheduled for December 12, 2024.
Shares are trading 6.69% higher at $1.52.