New funding to boost exploration and development at Dalgaranga Gold Project

Spartan Resources Limited (ASX:SPR) has successfully secured A$25 million through an institutional placement, marking a significant step in accelerating the high-grade growth strategy at the Dalgaranga Gold Project.

Highlights of the Placement:

  • Substantial Funding: A$25 million raised from leading domestic and international resource investors.
  • Placement Details: Approximately 62.5 million new shares issued at A$0.40 per share, a 3% premium over the last close.
  • Use of Proceeds: Funds earmarked for expanded exploration at Dalgaranga in 2024, including drilling out the Never Never Deeps and new discoveries, completing a Feasibility Study for the project’s restart, and general corporate costs.
  • Strengthened Financial Position: Spartan’s pro-forma cash position post-placement is A$53.2 million.

Spartan’s Managing Director and CEO, Simon Lawson, commented on the placement’s success:

We are very pleased with the level of support shown by well-credentialed resource investors for the Placement, with the strong demand received, representing a clear endorsement of Spartan’s high-grade growth strategy. The proceeds of this Placement, combined with existing cash reserves, will put Spartan in an outstanding position to capitalise on what has been an exceptional year for the Company in 2023 and significantly upscale our exploration and resource drilling efforts in the first half of 2024.

The funds raised will be earmarked to delivering resource growth above the scheduled MRE update in December 2023, targeting the next leg of resource growth at Dalgaranga and ensuring we can maintain our current exploration momentum. The Spartan team is committed to ensuring a thorough and detailed approach is taken to the delineation of the Never Never orebody and the surrounding targets. Spartan is focused on expanding the Never Never footprint with the most recent results hitting broad mineralisation more than 500m from surface.

The Spartan Board has approved a significant increase in our exploration activities on site with the Placement designed to ensure Spartan’s balance sheet strength and flexibility is maintained while funds are committed to advancing the Dalgaranga Gold Project.

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