Ramelius Resources (ASX: RMS) is making a bold move, announcing a transformational deal to acquire Spartan Resources (ASX: SPR). This deal aims to create a gold mining heavyweight, with a vision of producing over 500,000 ounces of gold per year by FY30.
Under the agreement, Ramelius will acquire all outstanding Spartan shares it doesn’t already own via a Scheme of Arrangement or, if that falls through, a Takeover Offer. Spartan shareholders will receive $0.25 in cash and 0.6957 Ramelius shares per Spartan share, valuing Spartan at $2.4 billion. That’s an 11.3% premium to Spartan’s last closing price and a 27.5% premium to its 30-day average price.
Why This Deal Makes Sense
This merger brings together two companies with complementary assets, strengthening Ramelius’ Mt Magnet operations with Spartan’s high-grade Dalgaranga project. The combined entity will boast a mineral resource of 12.1 million ounces and an ore reserve of 2.6 million ounces.
Key benefits include:
- Bigger and better production: Aiming for over 500,000 ounces per year by FY30.
- Cost efficiencies: Streamlining operations and cutting duplicate costs.
- Exploration upside: Spartan’s Never Never and Pepper deposits are among Australia’s highest-grade gold finds.
- Stronger financials: A combined $500 million in net cash, creating a gold producer with serious financial firepower.
What It Means for Shareholders
For Spartan shareholders, this deal offers an immediate premium, plus a stake in a larger, more diversified gold producer. They’ll hold 39.5% of the enlarged company and benefit from Ramelius’ operational expertise, balance sheet strength, and dividend history.
For Ramelius shareholders, the acquisition boosts resource quality, processing capacity, and production flexibility—strengthening its position as a leading mid-tier ASX-listed gold miner.
Leadership Changes & Next Steps
Spartan Executive Chairman Simon Lawson will join the Ramelius Board as Deputy Chair, while Deanna Carpenter will step in as a Non-Executive Director.
The Spartan Board unanimously supports the deal, with major shareholders—who control nearly 19% of Spartan shares—also backing the proposal.
The next key milestone is a shareholder vote in July 2025, with Ramelius aiming to wrap up the transaction soon after.
Bottom Line
This deal could be a game-changer for both companies. If it goes through, Ramelius will take a huge leap forward in scale and production, while Spartan shareholders get exposure to a stronger, more diversified miner with a clear growth strategy.
