The proposed $2.4 billion transaction between Ramelius Resources and Spartan Resources is now legally effective, with the scheme to be implemented on July 31.
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.
Following the Supreme Court of Western Australia approving the proposed scheme earlier this week, Spartan has lodged an office copy of the court’s orders approving the transaction with the Australian Securities and Investments Commission.
“The scheme is now legally effective, and it is expected that Spartan shares will be suspended from trading on the ASX from close of trading today (July 22),” Spartan said.
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. Once the scheme is implemented, Spartan shareholders will own 39.5 per cent of the combined group and Ramelius shareholders will hold the balance.
By acquiring Spartan, Ramelius’ portfolio of gold mines and projects is expected to hold a combined group mineral resource estimate of 12.1 million ounces (Moz) and an ore reserve of 2.6Moz.
The transaction also highlights geographical synergies between both companies. Spartan’s Dalgaranga gold project is located 65km north-west of Mt Magnet, the Western Australian mining town in which Ramelius owns and operates a gold production hub.
Bringing Dalgaranga under Ramelius’ fold is expected to further enhance the quality, scale and grade of the existing Mt Magnet operation, among other benefits.
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