Ramelius Resources makes move on Spartan Resources with $2b-plus bid Daniel NewellThe West Australian
Mon, 17 March 2025 7:16AM Daniel Newell Ramelius Resources managing director Mark Zeptner.Credit: Carwyn Monck/Kalgoorlie Miner/TheWest
Ramelius Resources has made its long-expected move on fellow gold play Spartan Resources with a $2 billion-plus takeover bid.
The pair told investors on Monday they had entered into a binding transaction implementation deed for 19.9 per cent shareholder Ramelius to sweep up the remainder of Spartan’s stock for 25¢ in cash and 0.6957 new Ramelius shares for each Spartan security.
If that scheme fails, Ramerlius will launch a conditional off-market takeover offer for the same consideration.
The deal implies a $1.78 value for each Spartan share and an overall equity value of $2.4 billion.
Ramelius and Spartan said the union — which comes as gold breaches new all-time highs above $US3000 an ounce amid renewed safe-haven demand — would create a 500,000 ounce-a-year producer by FY30 and a mineral resources estimate of 12.1 million ounces.
Rumours of a potential tie up began swirling late last year when Ramelius upped its stake after tipping in to the gold mining hopeful’s $220m capital raising. They gathered pace last week when Spartan’s shares soared 13 per cent.
They jumped another 11.1 per cent in early trade on Monday to $1.77.
It was not such good news for Ramelius, with its shares hammered 20 per cent lower after unveiling an updated plan for its Mt Magnet operation which would be more expensive and initially produce less gold than investors were hoping.
Ramelius managing director Mark Zeptner on Monday said the takeover would “supercharge” the Mt Magnet production hub with the integration of Spartan’s nearby high-grade Dalgaranga project.
“The combination will see Mt Magnet deliver higher ounces, at higher grade, with higher margins,” Mr Zeptner said.
“In addition to the incredible production potential combining these two companies delivers, we are also excited to see what the ongoing exploration efforts at Dalgaranga can deliver for the benefit of the combined group’s shareholders.”
Spartan’s board has unanimously recommended that shareholders back the deal in the absence of a superior bid.
Chair Simon Lawson said it was a highly attractive and transformational combination.
“The combined group will be positioned as a leading mid-tier ASX-listed gold producer with an enviable and robust growth pipeline including a significantly de-risked development pathway for Dalgaranga underpinned by Ramelius’ robust balance sheet, strong cash generation and development expertise,” Mr Lawson said.
“With the expected commencement of operations at Dalgaranga we expect the enlarged Mt Magnet-Dalgaranga hub to cement itself as a long-life and low-cost mining operation.
“Spartan shareholders will be able to benefit from continued exposure to this exciting journey, while also gaining exposure to the rest of Ramelius high-quality WA gold portfolio.”
Under the deal, Mr Lawson would become deputy chair of the new group.
Spartan’s Dalgranga mine had a troubled life before being switched off in late 2022. While the operating infrastructure at the site collects dust, a spate of high-grade drilling results over the past two years reignited interest in the project and catapulted Spartan’s shares more than 650 per cent.
SPR Price at posting:
$1.75 Sentiment: None Disclosure: Held
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