Western Australian gold producer Ramelius Resources (ASX:RMS) has joined the register of Spartan Resources (ASX:SPR) after taking an 8.9% interest in its fellow gold explorer.
Ramelius, which has a market capitalisation of $2.2 billion, bought 98.5 million shares in Spartan but has ruled out any immediate plan for a takeover.
“Subject to the actions of Spartan or any third party, Ramelius has no current intention to acquire control or make a takeover offer for Spartan,” the major told the market this morning.
Spartan’s Dalgaranga Gold Project sits 65km northwest of Ramelius’ Mount Magnet Gold Mine in the Murchison Region of Western Australia.
Ramelius Managing Director Mark Zeptner says the investment in Spartan, which has a market value of just under $1 billion, provides the company with a “strategic addition to the portfolio”.
Spartan’s Dalgaranga Project is cornerstoned by the “high-grade” Never Never deposit which has a resource of 3.83 million tonnes @ 5.85 grams per tonne (g/t) for 721,200 contained ounces of gold.
The company is currently drilling to target extensions at depth and along strike of Never Never.
Earlier in June, Spartan reported the deepest intercept so far at the Pepper prospect of 30.79m @ 12.12g/t gold from 647.67m, including 3.47m @ 92.19g/t.
Never Never, meanwhile, delivered a hit of 19.67m @ 19.43g/t from 765.33m, including 3.74m @ 62.98g/t.
The Dalgaranga Mine was initially commissioned in 2018 and comprises a fully established gold mine, >2.5-million-tonne-per-annum carbon-in-leach processing facility, camp accommodation and airstrip.
The mine produced 71,153 ounces in the 2022 financial year before being placed on care and maintenance in November 2022 to facilitate the implementation of a new strategic operating plan and a financial restructure.
Following the purchase of Spartan shares, Ramelius has $446M in cash and gold.
Write to Angela East at Mining.com.au
Images: Spartan Resources
