A$80m Fully Underwritten Equity Raising to Accelerate Exploration and Development of Dalgaranga Gold Project

Spartan Resources Limited (Spartan or Company) (ASX:SPR) has today announced a fully underwritten $80 million Equity Raising to be conducted via a $33 million 1-for-17 pro rata accelerated non- renounceable entitlement offer and a $47 million placement to institutional, professional and sophisticated investors.

Highlights

• Fully underwritten $80m equity raising (Equity Raising) comprising:
  • Institutional placement to raise approximately $47m (Placement); and
  • A 1-for-17 pro rata accelerated non-renounceable entitlement offer of 56.8m shares to raise approximately $33m (Entitlement Offer).
• Equity Raising being conducted at a fixed offer price (Offer Price) of $0.58 per share, representing a 11.5% discount to the last closing price of $0.655 per share on 17 April 2024.
• The Equity Raising follows the Company’s continued run of exploration success at the high-grade Never Never deposit and its very recent success with the discovery of the high-grade Pepper Prospect, including an intersection of 17.5m @ 15.9g/t¹:
  • Pepper sits perpendicular to Never Never just 90m to the south and displays the same “Never Never” style mineralisation characteristics;
  • The Pepper discovery further validates Spartan’s exploration thesis for the Dalgaranga Gold Project and will be a key focus for its upcoming drilling campaign along with other key targets including Sly Fox, Four Pillars and West Wings.
• Proceeds from the Equity Raising to be used to underpin a significantly expanded exploration campaign at Dalgaranga in 2024/25, including:
  • Accelerated Resource extension drilling at Never Never, Pepper and the broader Gilbey’s Complex including “lookalike” targets (Sly Fox, Four Pillars, West Wings);
  • The development of an underground exploration decline, which is scheduled to commence in the second half of 2024; and
  • Site infrastructure early works, general working capital, care and maintenance, tenement commitments and corporate and transaction costs.
• Spartan is well-funded with pro-forma cash position of $110m on completion of the Equity Raising².

Spartan Managing Director and Chief Executive Officer, Simon Lawson, said:

“This is a landmark capital raising for Spartan which puts the Company in an exceptional position to deliver on the huge potential of the Never Never discovery and our other recent exploration successes at Dalgaranga.

“The proceeds will allow us to establish an underground exploration decline that will take underground development to within 50 to 100 metres of the Never Never orebody. This will allow us to cost effectively drill-out Never Never, the new Pepper discovery and Four Pillars to a very high level of definition, while also testing other ‘look-alike’ targets in the vicinity.

“Importantly, the underground exploration decline is also likely to provide for an accelerated pathway to re-commence mining at the time of a Final Investment Decision to re-start production. The Spartan team is committed to ensuring a thorough and diligent approach is taken to the delineation of the high-grade orebodies at Dalgaranga. The proceeds of this capital raise will ensure we have the balance sheet strength to progress our robust and thorough re-start plan, and the financial flexibility to commence early works in advance of the re-start decision.”

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