Spartan sells non-core gold mining projects worth up to $15.6 million

• Spartan Resources sells Glenburg and Egerton gold projects to Benz Mining for $15.6 million in cash and stock
• The company will maintain growth potential thanks to ~15% stake in Benz
• The deal will allow Spartan to focus on advancing its Dalgaranga project towards production.

Special report: Spartan Resources is selling its non-core Glenburg and Egerton gold projects in Washington state to Benz Mining for $15.6 million in cash and stock to focus on its flagship Dalgaranga project.

In accordance with the binding agreement, Benz Mining (ASX:BNZ) will pay Spartan Resources (ASX:SPR) initial $1 million in cash and 33 million CHESS escrow instruments valued at $8.6 million. He will also receive up to $6 million in conditional payments if certain milestones are met.

Upon completion of the agreement, the company will own approximately 15% of the shares of BNZ and will have the right to appoint directors to its board of directors.

This allows SPR to maintain the potential for value growth in the Glenburgh and Egerton projects.

“The Glenburgh and Egerton projects have undoubtedly suffered from a lack of attention from the Spartan Group in recent years as a result of the incredible success we have had at Dalgaranga,” said executive chairman Simon Lawson.

“As a result, they are considered non-core in our portfolio given that we are focused on continuing to rapidly add high quality ounces and progress Dalgaranga towards a decision to restart production.

“We are therefore pleased to have reached an agreement with well-funded and well-supported exploration company Benz Mining to give these assets new life.

“With a combined Mineral Resource estimate of 537,000 ounces at 1.0 g/t gold, Glenburg and Egerton represent impressive growth assets with demonstrated potential to produce high-grade underground ounces that are expected to be the focus of exploration Benz campaign.”

Lawson said the company would remain involved in the two projects, adding that Nick Jolly – a key member of the SPR geology team associated with the Never Never and Pepper high-grade gold discoveries – is the company’s proposed candidate for the BNZ board.

“Spartan will also provide additional technical support and assistance to Benz, building on our history with this asset and leveraging the knowledge gained at Dalgaranga, where our team successfully discovered high-grade gold deposits adjacent to historic lower-grade discoveries,” Lawson added.

Dalgaranga Project

SPR is working at a frantic pace to restart production at Dalgaranga, with the high-grade Never Never deposit at the center of its efforts at 1.485 million ounces and 8.07 g/t.

However, the company did not stop at geological exploration. latest test results Tensile and infill drilling produced huge interceptions through the Pepper deposit, with 638.75 gram-meters – the third-best gram-to-meter drilling interceptions ever recorded for Never Never and Pepper – a remarkable achievement.

In late September, Lawson noted that the results show Dalgaranga “is truly moving to the next level as a high-grade ‘belt-scale’ gold system with real multi-million ounce potential.”

Exploratory drilling work on Juniper Work is also underway to develop multiple sequential underground drilling platforms that will allow the company to further identify and rapidly expand existing high-grade gold prospects, as well as explore for even more of the same high-grade gold sources.

This article was developed in collaboration with Spartan Resources, a Stockhead advertiser at the time of publication.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.