The Supreme Court of Western Australia has greenlit Ramelius Resources’ proposed $2.4 billion acquisition of Spartan Resources.
Under the binding transaction implementation deed announced in March, Ramelius will pay $0.25 in cash and 0.6957 Ramelius shares for each Spartan share, with an implied value of $1.78 per Spartan share.
Ramelius holds a 19.9 per cent shareholding in Spartan, the owner of the Dalgaranga gold project in WA, which comprises a fully developed gold mining operation, a carbon-in-leach processing facility, a camp and airstrip, and an extensive landholding with potential for new gold discoveries.
With the Supreme Court of Western Australia lodging orders having approved the scheme between Ramelius and Spartan, the deal is expected to be implemented by the end of July.
“Spartan intends to lodge an office copy of the court’s orders with the Australian Securities and Investments Commission on July 22, at which time the scheme will become effective,” Spartan said.
“Spartan expects that the ASX will suspend Spartan shares from trading on the ASX with effect from the close of trading on July 22.”
All Spartan shareholders that hold Spartan shares will be entitled to receive the scheme consideration on July 24 at 5pm AWST.
All scheme shareholders will receive the scheme consideration they are entitled to on July 31. When the scheme is implemented, Spartan shareholders will own 39.5 per cent of the combined group.
“This is a highly attractive and transformational combination which we believe represents a great outcome for Spartan shareholders,” Spartan executive chairman Simon Lawson said in March.
“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.
“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.”
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