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Spartan Resources agrees to sell gold mining projects to Benz Mining

Posted on by Bobb
Spartan Resources agrees to sell gold mining projects to Benz Mining

The deal includes cash and Benz Mining shares. Photo: Surapong Buacharoen/Shutterstock.

Spartan Resources has agreed to the mandatory sale of its Glenburgh and Egerton gold projects in Western Australia (WA) to Benz Mining.

The deal includes cash and Benz stock, allowing Spartan to retain a stake in the project’s future success.

The total consideration payable to Spartan is up to A$15.6 million (US$10.2 million), comprising A$1 million in cash and A$8.6 million in Benz CHESS depositary instruments.

In addition, there are conditional payments of up to A$6 million.

The transaction is consistent with Spartan’s strategy to focus on fully developing resources at its flagship Dalgaranga gold project, located 475 km north-east of Perth in WA.

Completion of the transaction is expected in December 2024.

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Upon completion of the transaction, Spartan will own approximately 15% of Benz shares and will have the right to appoint a director to Benz’s board of directors, subject to certain conditions.

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 achieved at Dalgaranga.

“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 g/t gold (grams per tonne gold), Glenburg and Egerton are impressive growth assets with demonstrated potential for high-grade underground ounces expected to be the focus of attention Benz’s exploration campaign. “

In April of this year, Spartan Resources announced A$80 million fully underwritten capital initiative to advance the development of the Dalgaranga gold project.

The proceeds will be used for the geological exploration campaign at the project.


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