Gold miner Ramelius Resources says it has no current intention to take over Spartan Resources (formerly Gascoyne Resources) after spending $87.7m on a 8.9 per cent stake in the ASX-listed smaller group.
Ramelius said the 98.5 million shareholding, bought on market on June 25 and 26, was a "strategic investment", given Spartan's Dalgaranga gold project, which is located 65km north-west of its Mount Magnet operations in the Murchison Region of Western Australia.
"Our investment into Spartan Resources provides us with a strategic addition to the portfolio," Ramelius managing director Mark Zeptner said.
Following the purchase of Spartan shares, Ramelius has $446m in cash and gold, and its operations are forecast to continue generating significant free cash flow over the medium term.
Shares in Ramelius last at $1.87; Spartan at 90c.
SPR Price at posting:
90.0¢ Sentiment: None Disclosure: Held
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