Spartan raises $220 million, Ramelius lifts stake to 20%
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The news: Explorer Spartan Resources has raised $220 million through an institutional share placement that also included its bigger rival Ramelius Resources lifting its stake in the company.
The numbers: Spartan said it received firm commitments for $220 million, after offering shares at $1.32 each, a 7% discount to its closing price on Wednesday.
Spartan shares are trading 0.4% lower at $1.42 in early trading on the ASX following the news.
Separately, Ramelius said it has participated in the capital raising, which lifted its holding in Spartan to 19.9% from 18.3% earlier. Ramelius shares are up 2.8% to $2.17 each.
The context: Spartan said the proceeds of the share placement would be used to accelerate production restart activities at its Dalgaranga Gold Project in Western Australia, where it recently upgraded the mineral resource estimate. It is progressing a feasibility study planned for release in mid-2025.
What they said: “The proceeds will be deployed towards enhancing the state of operational readiness at the site, including undertaking mill modifications and infrastructure early works, as well as immediately commencing underground development at the high grade Never Never and Pepper deposits,” interim executive chair Simon Lawson said.
The sources: ASX announcement, ASX announcement
