Investing News Network AUSTRALIA

Spartan Resources

$25 million Institutional Placement to Accelerate High- Grade Growth Strategy

High-quality institutions back Spartan’s plan to unlock the potential of the Dalgaranga Gold Project

Placement Overview

Spartan Resources Limited (“Spartan” or “Company”) (ASX: SPR) is pleased to advise that it has received firm commitments to raise A$25 million (before costs) through a placement to institutional investors (“Placement”).

  • Firm commitments received from leading domestic and international resource investors to raise A$25 million through a targeted institutional placement priced at A$0.40 per share, a premium of approximately 3% to the last close on 15 November 2023.
  • Proceeds to be used to underpin an expanded exploration campaign at Dalgaranga in 2024:
  • Drill out Never Never Deeps and grow this high-grade Resource beyond the MRE update scheduled for December 2023;
  • Drill out multiple new high-grade discoveries immediately along strike including Four Pillars, West Winds, Arc and Ink to bring them into the Resource;
  • Complete a Feasibility Study on a fully integrated restart of the Dalgaranga Project based on the Company’s new high-grade strategy; and
  • General working capital, care and maintenance, corporate and transaction costs.
  • Spartan is well-funded with pro-forma cash position of A$53.2m on completion of the Placement1.

The Placement comprises the issue of approximately 62.5 million new Spartan shares (“New Shares”) (representing approximately 7% of Spartan’s existing shares on issue) and was conducted at an offer price of A$0.40 per share, representing a premium of approximately 3% to the last closing price of A$0.39 per share prior to the Placement.

The New Shares will be issued under the Company’s existing placement capacity under ASX Listing Rule 7.1 and are expected to be issued on Friday, 24 November 2023. The New Shares issued under the Placement will rank equally with existing Spartan shares as at their date of issue.

Trading in Spartan shares is expected to resume on the ASX from market open today (Friday, 17 November 2023).

Spartan Managing Director and Chief Executive Officer, Simon Lawson, said:

“We are very pleased with the level of support shown by well-credentialed resource investors for the Placement, with the strong demand received, representing a clear endorsement of Spartan’s high-grade growth strategy.

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 up- scale 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 update in December 2023, targeting the next leg of resource growth at Dalgaranga and ensuring we can maintain our current exploration momentum.

The Spartan team is committed to ensuring a thorough and detailed approach is taken to the delineation of the Never Never orebody and the surrounding targets. Spartan is focused on expanding the Never Never footprint with the most recent results hitting broad mineralisation more than 500m from surface.

The Spartan Board has approved a significant increase in our exploration activities on site with the Placement designed to ensure Spartan’s balance sheet strength and flexibility is maintained while funds are committed to advancing the Dalgaranga Gold Project.”

Click here for the full ASX Release

This article includes content from Spartan Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here .


Firetail Resources

Keep reading... Show less

Top News

Galan Lithium

Related News

Galan Lithium