Spartan Resources (ASX:SPR) is conducting a placement to raise $220 million to accelerate the restart production at the Dalgaranga Gold Project in Western Australia.
The funds, combined with the company’s existing cash balance of $70 million, will support the completion of the underground exploration decline, as well as underground drilling which will begin early next year.
Spartan, which has a market capitalisation of $1.58 billion, adds that the funds will also go towards surface drilling at the broader Gilbey’s Complex, early infrastructure works, mill modifications, and technical studies.
Under the placement, institutional and sophisticated investors can purchase shares for $1.32 each, which represents a 7% discount to the last closing price of $1.42 per share.
Canaccord Genuity and Sternship Advisers are acting as joint lead managers and bookrunners to the placement. Euroz Hartleys will act as co-manager to the placement, while Herbert Smith Freehills is acting as legal advisor.
The company’s largest shareholder Ramelius Resources (ASX:RMS) will subscribe for a package of shares under the placement, which is expected to increase its stake to 19.9%.
Larvotto Resources (ASX:LRV) is also conducting a placement to raise $30 million to fund ongoing exploration and early site works at the Hillgrove Project in New South Wales.
The funds will support up to five drill rigs to complete infill and expansionary drilling, build an underground mine team, prepare for mill expansion, and secure long lead items for the Hillgrove Project.
Larvotto, which has a market capitalisation of $203.53 million, says the funds will also support recruitment and the build-out of an ‘operational readiness’ team for the project, as well as a Definitive Feasibility Study.
Under the two-tranche placement, the offer price of $0.52 per share represents a 12.6% discount to the last closing price of $0.595.
Canaccord Genuity, Blue Ocean Equities, and Aitken Mount Capital Partners will act as joint lead managers to the placement.
The settlement of the first tranche is expected to be on 12 December, while the shares under tranche two will be settled in late January 2025.
Meanwhile, Titan Minerals (ASX:TTM) has conducted a placement, raising $20 million to deliver its strategy to expand its Dynasty Gold-Silver Project in southern Ecuador.
CEO Melanie Leighton says with the funding commitments secured, the company has a clear runway and is set to deliver “strong” results and growth in the coming 12 months.
“Our recent exploration has delineated many new targets, and we have an aggressive drill program underway, aimed at significantly expanding our resource base,” Leighton says.
The issue price of $0.44 per share represents a 12% discount to the last closing price of $0.50.
Bell Potter Securities acted as lead manager, while Evolution Capital and Canaccord Genuity acted as co-managers to the placement.
The new shares will be settled on 10 December 2024.
Lastly, Novo Resources (ASX:NVO) has sold 38% of its shareholding in privately-owned San Cristobal Mining for $11.5 million, which will support its exploration plans across Western Australia and Victoria.
San Cristobal Mining is a private mining company focused on becoming a silver producer through operations in Bolivia.
The company’s remaining stake in San Cristobal is estimated at $19 million.
Novo, which has a market capitalisation of $29.78 million, says the funds allow the company to focus on uncovering additional exploration opportunities and repay the first portion of the deferred consideration owed to IMC Holdings of $3 million, which is due later this month.
Once the first portion is paid, Novo will owe $12.6 million to IMC, which is repayable by 2026.
Haywood Securities acted as financial advisor in connection to the share sale, while Owen Bird Law Corporation acted as legal counsel.
Following this announcement, Novo’s share price had increased 42.85% to $0.12 as of 3pm AEDT yesterday.
Write to Aaliyah Rogan at Mining.com.au
Images: Spartan Resources
