Spartan Resources has acquired the remaining exploration tenements adjacent to its Dalgaranga gold project in Western Australia that it did not already own.
Spartan originally held an 80 per cent stake in two unincorporated joint ventures concerning exploration tenements E59/1904, E59/1906, E21/195 and E59/1709 at Dalgaranga, while private parties held the balance.
Under the terms of the binding agreements, Spartan will now acquire the remaining 20 per cent interest in each tenement from the respective private holders for $2.5 million. The two joint ventures will also be disbanded.
“We are pleased to be able to consolidate the tenure immediately adjacent to our flagship Dalgaranga gold project,” Spartan executive chairman Simon Lawson said.
“Moving to 100 per cent ownership provides us with operational flexibility as we progress forward with making a re-start decision at Dalgaranga underpinned by the high-grade Never Never and Pepper underground deposits.”
Several prospects on the soon-to-be acquired tenements are prospective for mineralisation similar to Never Never and Pepper. Spartan plans to carry out exploration at these tenements in the future.
“Outright ownership of the Dalgaranga exploration tenements assists in simplifying aspects of our business model as we continue to progress the steps required to implement the transaction with Ramelius that we announced on March 17,” Lawson said.
Dalgaranga comprises a fully developed gold mining operation, a carbon-in-leach processing facility, a camp and airstrip, and an extensive landholding with potential for new gold discoveries.
Acquiring Spartan will provide Ramelius access to an emerging gold project located 65km north-west of Mt Magnet, the mining town in which Ramelius owns and operates a gold production hub.
Once the scheme is implemented, Spartan shareholders will own 39.5 per cent of the combined group.
