Spartan Resources has secured A$25m ($16.18m) in firm commitments to support exploration work at its 100%-owned Dalgaranga gold project in Western Australia (WA).

The company received firm commitments from institutional investors through a placement.

The placement will involve issuing around 62.5 million new Spartan shares at an offer price of A$0.40 apiece.

Spartan plans to use the proceeds, together with its existing cash balance, for exploration and studies, as well as to meet care and maintenance costs for the Dalgaranga project.

The company will also allocate A$29.3m for exploration work at the Never Never deposit, including “look-alike” targets and feasibility studies. A further A$2.7m is reserved to meet minimum expenditure commitments.

The company will spend A$8m on the Dalgaranga project’s care and maintenance through to the end of November 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.

Company Profile – free sample

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 GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Spartan will allocate A$12m to cover corporate costs and for general working capital, and A$1.2m for transaction and other costs.

Spartan managing director and CEO Simon Lawson said: “The proceeds of this placement, combined with existing cash reserves, will put Spartan in an outstanding position to capitalise on what has been an exceptional year for the company in 2023 and significantly upscale our exploration and resource drilling efforts in the first half of 2024.

“The funds raised will be earmarked to delivering resource growth above the scheduled MRE [mineral resource] update in December 2023, targeting the next leg of resource growth at Dalgaranga and ensuring we can maintain our current exploration momentum.”

Canaccord Genuity (Australia) and Ashanti Capital are serving as joint lead managers to the placement. Herbert Smith Freehills is providing legal assistance.

Located 475km north-east of Perth, the Dalgaranga project includes a fully developed gold mining operation that is currently on care and maintenance.

It also includes an extensive exploration landholding.