Spartan Resources (ASX:SPR) has completed the sale of its non-core Glenburgh and Egerton Gold projects in in the Gascoyne region of Western Australia to dual-listed Benz Mining Corp (TSX-V:BZ).
The sale was for $1 million in cash and 33 million Benz CHESS Depository Instruments, which represents a 15% shareholding in Benz, plus up to an additional $6 million in contingent payments. Each CDI represents one common share in the authorised capital of Benz.
Spartan Executive Chairman Simon Lawson says the sale to Benz, which is also listed on the Australian Securities Exchange, will give these assets a reinvigorated life.
“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 near-term exploration campaign,” Lawson says.
“The Spartan team is looking forward to staying involved in the exploration at the Glenburgh and Egerton projects and Nick Jolly – a key member of the Spartan geology team associated with the discovery of the Never Never and Pepper high-grade gold deposits – has been appointed as the Spartan nominee to the Benz board.”
Benz Executive Chairman Evan Cranston says it’s a transformational acquisition of the Glenburgh and Mt Egerton Gold Projects, marking an exciting new chapter for Benz.
“These projects are located in a highly prospective and underexplored gold region, and we look forward to unlocking their full potential with our planned drilling programs. Our team is eager to update the market on our progress as we advance exploration and development in the coming months,” Cranston says.
Cranston notes that two tenements associated with the Glenburgh project are still pending grant, while one tenement related to the Mt Egerton project is currently undergoing the renewal process.
Write to Adam Orlando at Mining.com.au
Images: Spartan
