Spartan Resources has agreed to a binding sale of its Glenburgh and Egerton gold projects in Western Australia (WA) to Benz Mining.
The deal includes a cash payment and shares in Benz, allowing Spartan to maintain a stake in the project’s future success.
The gross consideration payable to Spartan is up to A$15.6m ($10.2m), comprising A$1m in cash and A$8.6m of Benz CHESS Depository Instruments.
Additionally, there are up to A$6m in contingent payments.
This transaction aligns with Spartan’s strategy to concentrate on high-grade resource growth at its flagship Dalgaranga Gold Project situated 475km north-east of Perth in WA.
The completion of the transaction is expected in December 2024.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataUpon finalisation, Spartan will hold approximately a 15% share in Benz and will have the right to appoint a director to the Benz Board, contingent on certain conditions being met.
Spartan interim executive chairman Simon Lawson said: “The Glenburgh and Egerton projects have undoubtedly suffered from a lack of attention within the Spartan Group in recent years as a result of the incredible success we have enjoyed at Dalgaranga.
“As a result, they are considered non-core within our portfolio given our focus on continuing to rapidly add high-grade ounces and advancing Dalgaranga towards a production restart decision.
“We are therefore pleased to have reached agreement with a funded and well-backed explorer in Benz Mining to give these assets a reinvigorated life. With a combined Mineral Resource Estimate of 537,000oz at 1g/t Au [grams per tonne of gold], Glenburgh and Egerton are exciting growth assets with demonstrated potential for high-grade underground ounces – which is expected to be the focus of Benz’s exploration campaign.”
In April this year, Spartan Resources announced a fully underwritten A$80m equity-raising initiative to advance the development of the Dalgaranga Gold Project.
The proceeds are due to be used for an exploration campaign at the project.