ASX-listed Spartan Resources is fast-tracking a production restart at the Dalgaranga gold project, in Western Australia, with a A$220-million placement.
The company on Thursday announced commitments from domestic and international resource-focused institutional investors to raise the cash through a A$1.32-a-share placement.
Spartan’s largest shareholder, Ramelius Resources, has subscribed for shares in the placement to increase its ownership to 19.9%.
“The proceeds significantly strengthen our balance sheet, giving us a pro-forma cash position of $290-million with no debt,” said executive chairperson Simon Lawson.
The proceeds will be used towards enhancing the state of operational readiness at the site, including undertaking mill modifications and infrastructure early works, as well as starting underground development at the high-grade Never Never and Pepper deposits following completion of the underground exploration decline.
A feasibility study is scheduled for release in mid-2025 and Spartan plans to move to a final investment decision shortly thereafter.
“We have come a long way in transforming the Dalgaranga project in less than two years, and we see further huge potential within 5 km of the mill to add ounces and scale beyond Never Never and Pepper,” said Lawson.
Never Never and Pepper will form the core of the restart feasibility study, and the recent drilling success at the likes of Freak, West Wings, Four Pillars and Patient Wolf present opportunities to further increase the resource base and mineral inventory in order to grow production and mine life. 