Ramelius Resources has announced it has entered into a $2.4 billion deal to acquire Spartan Resources.
The deal will see Ramelius’ Mt Magnet production hub in Western Australia “supercharged” by the integration of Spartan’s high-grade mineral resource at the Dalgaranga gold project in the Murchison region.
It’s all part of Ramelius’ vision to be a 500,000 ounce per year producer by 2030.
“The combination will see Mt Magnet deliver higher ounces, at higher grade, with higher margins,” Ramelius managing director Mark Zeptner said.
“In addition to the incredible production potential combining these two companies delivers, we are also excited to see what the ongoing exploration efforts at Dalgaranga can deliver for the benefit of the combined group’s shareholders.
Spartan executive chair Simon Lawson described the deal as “highly attractive” and “transformational”.
“The combined group will be positioned as a leading mid-tier ASX-listed gold producer with an enviable and robust growth pipeline including a significantly de-risked development pathway for Dalgaranga underpinned by Ramelius’ robust balance sheet, strong cash generation and development expertise,” Lawson said.
“With the expected commencement of operations at Dalgaranga we expect the enlarged Mt Magnet-Dalgaranga hub to cement itself as a long-life and low-cost mining operation. Spartan shareholders will be able to benefit from continued exposure to this exciting journey, while also gaining exposure to the rest of Ramelius high-quality WA gold portfolio.”
Currently, Ramelius is capitalised at $2.54 billion, with shares most recently trading at $2.20 each. Spartan has a market value currently sitting at $2 billion, with shares closing at $1.60 a piece on Friday.
Ramelius first showed a greater interest in Spartan in June 2024 when the company upped its stake to 19 per cent. Though stating at the time Ramelius had no interest in acquiring Spartan, Zeptner said the company’s portfolio was “enviable”.
The $2.4 billion price tag on the deal represents an 11.5 per cent premium on Spartan’s closing price on Friday.
The Spartan board has unanimously recommended shareholders accept the deal, which they will vote on at a meeting in mid-July.
