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Highlights
Spartan Resources is divesting its Glenburgh and Egerton gold projects to Benz Mining for a total consideration of up to $15.6 million in cash and shares.
Following the transaction, Spartan will retain a ~15% equity stake in Benz Mining and the right to nominate a director to its board.
The divestment allows Spartan to concentrate resources on advancing its Dalgaranga project toward production.
Spartan Resources (ASX:SPR) has announced the sale of its non-core Glenburgh and Egerton gold projects in Western Australia to Benz Mining (ASX:BNZ) for a potential total of up to $15.6 million. This strategic move enables Spartan to refocus its efforts on its flagship Dalgaranga project.
Under the terms of the binding agreement, Benz Mining will initially provide Spartan with $1 million in cash along with 33 million CHESS Depository Instruments valued at approximately $8.6 million. Additionally, contingent payments of up to $6 million may be available if certain milestones are achieved. Upon completion of this agreement, Spartan will maintain a ~15% stake in Benz Mining and will have the opportunity to nominate a director to Benz’s board, thus retaining exposure to any future upside from the Glenburgh and Egerton projects.
Executive Chairman Simon Lawson highlighted that the Glenburgh and Egerton projects have not received adequate attention due to the focus on the successful Dalgaranga project. With a combined mineral resource estimate of 537,000 ounces at 1.0 g/t Au, these projects present significant growth potential, particularly for high-grade underground ounces, which will be the focus of Benz's exploration efforts.
Lawson also noted that Spartan will continue to support Benz Mining by providing technical assistance and insights gained from its experience at Dalgaranga, where high-grade gold deposits have been successfully discovered.
At the Dalgaranga project, Spartan is actively working towards a production restart, focusing on the high-grade 1.485 million-ounce Never Never deposit. Recent drilling results from the Pepper deposit have returned substantial intercepts, indicating strong potential for growth in this area.
In addition, preparations are underway for exploration drilling at the Juniper site, aimed at expanding and defining high-grade gold prospects. This comprehensive approach positions Spartan Resources for future advancements in its gold exploration and production activities.
