Delphi has been a staunch supporter for a long time … (since 2018 or 2019 … I’m glad it’s made a packet )
And essentially all new blood now in the new Dalgaranga?
..Germans out, Aussies in as Ramelius grows Spartan stake
German resources bloodhound Wilhelm Zours has taken his second major win off the table in 2024, selling a mammoth stake in gold explorer du jour Spartan Resources (ASX:SPR) in a move that places ASX gold hunter Ramelius Resources (ASX:RMS) in pole position to shape the future of the Dalgaranga owner.
Ramelius now has almost 18% of the $945 million capped Mid West gold explorer, which has crafted a high grade resource of almost 1Moz at the Never Never discovery since early 2023, located incredibly just a step away from the processing plant at its misfiring, low grade Dalgaranga mine.
Since recapitalising early last year at 10c and dropping the cursed Gascoyne Resources name, Spartan has been on a tear, up 850%.
A tidy gain for German fund Delphi, whose sale was foreshadowed after its rep Hansjoerg Plaggemars left the Spartan board last Friday. It sold exactly 100 million shares at a tidy 92c a pop, netting $92m.
Those all went to Ramelius, which last week clocked up an 8.9% stake, largely by tapping fellow Spartan insto Tembo Capital to sell down its 15% holding to 9.99%.
Majority owned by Zours, Delphi’s record is spotty and it has backed some duds.
But 2o24 has been a happy year, with the German money man also banking ~$180m from the sale of his stake in lithium success story Azure into a $1.7bn takeover by SQM and Hancock Prospecting.
Mine life concerns
Ramelius and Westgold Resources (ASX:WGX), which missed an opportunity to snare then Gascoyne Resources a few years ago and is butting heads with Mark Zeptner’s Ramelius over its merger with previous RMS target Karora Resources (TSE:KRR), have long been suggested as potential buyers for Spartan.
Each located in the Mid West and Ramelius in nearby Mt Magnet, each have concerns over the life and quality of their assets.
Ramelius has a couple good years ahead of it at Mt Magnet, thanks largely to ounces trucked from the ultra-high grade Penny mine, but that’s a sugar hit with reserves only forecast to last a few years.
The 280,000ozpa WA gold miner, capped at ~$2.1bn, had over $500m in the bank before splashing out on its Spartan stake, and recently approved the development of its Cue gold project to bolster the life of the Mt Magnet mill.
That project will last for three years via open pit methods from early 2025, producing 230,000oz, with underground production to follow.
Spartan’s discovery is of an altogether different scale to the scattered Cue deposits Ramelius acquired in its 2023 takeover of Musgrave Minerals.
Having recently raised $80 million from investors, SPR is well stocked to continue drilling at Never Never, which includes ~953,000oz at 5.74g/t and an exploration target of 1.6-1.9Moz at 5.8-6.7g/t, with additional high grade discoveries being made at the adjacent Pepper prospect…..
SPR Price at posting:
92.0¢ Sentiment: None Disclosure: Held
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