Ramelius Resources Ltd has agreed to acquire Spartan Resources Ltd in a $2.4 billion takeover deal. The offer includes $0.25 per Spartan share in cash and 0.6957 new Ramelius shares per Spartan share, valuing Spartan at $1.78 per share—an 11.3% premium to its last closing price of $1.60.
Spartan’s board and its three largest shareholders—Tembo Capital, 1832 Asset Management, and Fourth Sail Capital—support the deal. Together, they hold 18.9% of Spartan’s shares.
If completed, the merger will create a $4.2 billion company, making it the largest mid-tier gold producer on the ASX, behind Northern Star Ltd and Evolution Mining Ltd.
Spartan’s Dalgaranga Gold Project, located 475km northeast of Perth and 65km from Ramelius’s Mt Magnet mine, is a key asset in the deal. The combined company aims to increase annual gold production to 500,000 ounces by 2029–30.
“The merger of the two companies will create a leading Australian gold producer with a supercharged growth profile and exceptional exploration upside,” Ramelius managing director Mark Zeptner said.
“The combination matches Spartan’s excess processing capacity and high-grade mineral resource with Ramelius’s large mineral resource, current operating plan and tier one operational team.”
The combined group will have estimated gold reserves of 2.6 million ounces.