Ramelius Makes Strategic Investment in Spartan Resources

Ramelius Resources Limited (ASX: RMS) (“Ramelius”, the “Company”) has purchased 98.5 million shares in Spartan Resources Limited (ASX:SPR) (“Spartan”) as a strategic investment, representing approximately 8.9% of Spartan’s ordinary shares on issue.

Spartan’s Dalgaranga Gold Project is located 65km north-west of Mount Magnet in the Murchison Region of Western Australia. Ramelius continually evaluates gold assets in Western Australia and will make investments in the sector where it believes there is a strategic rationale.

Managing Director, Mark Zeptner, today said:

“Ramelius has an enviable portfolio with multi-stage operations and a development project that is underpinned by the long-life low-cost Mt Magnet operation. We also have extensive greenfield exploration opportunities and our investment into Spartan Resources provides us with a strategic addition to the portfolio”.

Following the purchase of Spartan shares, Ramelius has $446M in cash and gold, and its operations are forecast to continue generating significant free cash flow over the medium term.

Subject to the actions of Spartan or any third party, Ramelius has no current intention to acquire control or make a takeover offer for Spartan.

Click here for the full ASX Release

This article includes content from Spartan Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.