Ramelius takes strategic stake in rival Spartan
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The news: Gold miner Ramelius Resources has taken a strategic stake in smaller Western Australian rival Spartan Resources.
The numbers: Ramelius said it acquired an 8.9% stake in Spartan after spending $87.7 million on 98.5 million shares on 25 and 26 June.
Ramelius shares closed at $1.87 on Wednesday, while Spartan shares last traded at 90 cents each.
The context: Ramelius said in a statement to the ASX that it has no current intention to take over Spartan Resources.
The company said it continually evaluates gold assets in WA and will make investments in the sector where it believes there is strategic rationale. Spartan's Dalgaranga gold project is located 65km north-west of Ramelius’ own Mount Magnet operations in the state.
What they said: "Our investment into Spartan Resources provides us with a strategic addition to the portfolio," Ramelius managing director Mark Zeptner said.
The source: ASX announcement
