Ramelius Resources Ltd (ASX:RMS) has taken a strategic stake in Spartan Resources Ltd (ASX:SPR), a gold explorer and developer with assets in WA’s Murchison region, which has seen a series of positive news flow events related to its 952,000-ounce Never Never deposit throughout this year.
Ramelius bought up 98.5 million shares in Spartan, representing around 8.9 percent of the company’s shares, following media reports that such a sell down was imminent.
The investment represents a strategic addition to Ramelius’ gold asset portfolio within the state, as Spartan looks to redevelop its Dalgaranga Gold Project – located 65 kilometres northwest of Mount Magnet – with recent news including its discovery of a high-grade lode dubbed the Pepper Prospect, in April this year.
Discovered immediately south of Never Never – itself discovered in 2022 – the Pepper Prospect was identified through drilling yielding intercepts such as 17.52 metres at 15.86 grams per tonne of gold from 522.0 metres, including 9.22 metres at 27.89 grams per tonne.
In a statement, Ramelius stated that it ‘continually evaluates gold assets in Western Australia and will make investments in the sector where it believes there is a strategic rationale.’
Its managing director Mark Zeptner said the share buy up would boost Ramelius interests in WA’s gold market.
“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,” he said.
“We also have extensive greenfield exploration opportunities and our investment into Spartan Resources provides us with a strategic addition to the portfolio.”
Ramelius has been trading at $1.87 cents.