Spartan Resources (ASX:SPR) has secured $220m 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 backing from domestic and international resource-focused investors. Notably, 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, alongside infrastructure upgrades and mill modifications. The company also plans to launch an aggressive drilling campaign to expand resources across the Dalgaranga site, including extensions to the broader Gilbey’s Complex.
Spartan’s Interim Executive Chairman, Simon Lawson, described the capital raising as pivotal for the company’s growth. “This capital raising puts us firmly on track to re-start production and become the next significant mid-tier high-grade gold producer on the ASX,” Lawson said. “The proceeds will enable us to enhance the state of operational readiness at Dalgaranga and unlock its full potential through continued aggressive exploration.”
The Dalgaranga Gold Project, 65km northwest of Mt Magnet, holds a combined high-grade mineral resource estimate of 2.32 million ounces at an average grade of 9.32g/t gold from its Never Never and Pepper deposits. Spartan’s near-term plans include a feasibility study for the restart, expected by mid-2025, with a final investment decision anticipated soon after.
The funding also leaves Spartan well-capitalised, with a pro-forma cash position of $290m and no debt. The placement shares are expected to be issued on 12 December 2024.
Shares are trading 6.69% higher at $1.52.