Spartan Resources has agreed to a binding sale of its Glenburgh and Egerton gold projects in Western Australia (WA) to Benz Mining.
The deal includes a cash payment and shares in Benz, allowing Spartan to maintain a stake in the project’s future success.
The gross consideration payable to Spartan is up to A$15.6m ($10.2m), comprising A$1m in cash and A$8.6m of Benz CHESS Depository Instruments.
Additionally, there are up to A$6m in contingent payments.
This transaction aligns with Spartan’s strategy to concentrate on high-grade resource growth at its flagship Dalgaranga Gold Project situated 475km north-east of Perth in WA.
The completion of the transaction is expected in December 2024.
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Upon finalisation, Spartan will hold approximately a 15% share in Benz and will have the right to appoint a director to the Benz Board, contingent on certain conditions being met.
Spartan interim executive chairman Simon Lawson said: “The Glenburgh and Egerton projects have undoubtedly suffered from a lack of attention within the Spartan Group in recent years as a result of the incredible success we have enjoyed at Dalgaranga.
“As a result, they are considered non-core within our portfolio given our focus on continuing to rapidly add high-grade ounces and advancing Dalgaranga towards a production restart decision.
“We are therefore pleased to have reached agreement with a funded and well-backed explorer in Benz Mining to give these assets a reinvigorated life. With a combined Mineral Resource Estimate of 537,000oz at 1g/t Au [grams per tonne of gold], Glenburgh and Egerton are exciting growth assets with demonstrated potential for high-grade underground ounces – which is expected to be the focus of Benz’s exploration campaign.”
In April this year, Spartan Resources announced a fully underwritten A$80m equity-raising initiative to advance the development of the Dalgaranga Gold Project.
The proceeds are due to be used for an exploration campaign at the project.
