Spartan Resources Limited (Spartan or Company) (ASX:SPR) is pleased to announce that the Company has successfully completed an institutional placement (Placement) and the institutional component of a 1-for-17 fully underwritten pro rata accelerated non-renounceable entitlement offer (Institutional Entitlement Offer, together with the Placement the Institutional Offer) of new fully paid ordinary shares in Spartan (New Shares).

Highlights

• Strong demand received from both eligible existing and new institutional investors in Australia and internationally for Spartan’s A$80m equity raising (Equity Raising) comprising a:
  • A$69m Placement and Institutional Entitlement Offer (Institutional Offer) completed; and
  • A$11m fully underwritten Retail Entitlement Offer to existing, eligible retail shareholders opens on Friday, 26 April 2024, and is expected to close at 7.00pm (Sydney time) Friday, 10 May 2024.
• Proceeds from the Equity Raising will be used to underpin a significantly expanded exploration campaign at the Dalgaranga Gold Project in 2024/25, including:
  • The development of an underground exploration decline, which is scheduled to commence in the second half of 2024;
  • An extensive 65,000m drill program targeting Never Never, Pepper and the broader Gilbey’s Complex including “look-alike” targets (Sly Fox, Four Pillars, West Wings); and
  • Site infrastructure early works, general working capital, care and maintenance, tenement commitments and corporate and transaction costs.
• Alongside, the Equity Raising, the Joint Lead Managers facilitated the sell-down of approximately 57 million Spartan shares (worth approximately A$33 million) representing the full amount of shares that were previously held by NRW Holdings Limited (NRW Selldown):
  • The NRW Selldown shares were placed to institutional investors and will settle with the Institutional Offer.
• Spartan is well-funded with a pro-forma cash position of A$110 million on completion of the Equity Raising¹.

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

“The outstanding response to this capital raise from leading domestic and international resource investors reflects the quality of the high-grade discoveries we have made at Dalgaranga over the past 18 months, the strength of the team we have put together, and the exciting growth pathway ahead of us.

“We are pleased to welcome a number of new institutional shareholders to the register as part of this capital raise and I would like to take this opportunity also to thank existing shareholders for their support.

“We also acknowledge the support of NRW Holdings through the Company’s restructure and recapitalisation.

“This raising puts Spartan in an exceptional position to deliver on the huge potential of the Never Never discovery and our other recent exploration successes at Dalgaranga, with a very strong balance sheet to unlock the full value of what we have already discovered and take this company to the next level as a mid-tier gold developer and ultimately producer.”

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