With a Vision to be a +500koz/pa producer by FY30, two ASX gold companies have sought to create a leading Western Australian gold company. These top gold companies are having strong, highly profitable existing operations, a supercharged growth profile and exceptional exploration upside
Ramelius Resources Limited (ASX: RMS) and Spartan Resources Limited (ASX: SPR)
Ramelius Resources and Spartan Resources have announced a significant merger agreement under which Ramelius will acquire all remaining Spartan shares it does not already own. The transaction, valued at approximately A$2.4 billion, will be conducted through a Scheme of Arrangement or, if unsuccessful, an off-market takeover offer. Spartan shareholders will receive A$0.25 in cash and 0.6957 new Ramelius shares per Spartan share, implying a total value of A$1.78 per share. The deal represents an 11.3% premium to Spartan’s last closing price and a 27.5% premium to its 30-day volume-weighted average price.
Emerging as one of the best gold mining stocks, the merger would also offer 39.5% ownership to Spartan in the Combined Group. Ramelius Shareholders would be benefited by enhanced quality, scale and grade of the existing Mt Magnet operation.
The merger is expected to create a leading Australian gold producer with a combined mineral resource base of 12.1 million ounces and ore reserves of 2.6 million ounces. The integration of Spartan’s high-grade Dalgaranga deposit with Ramelius’ Mt Magnet operations is anticipated to drive significant synergies, including increased production efficiency and cost savings. The combined entity aims to achieve annual gold production of over 500,000 ounces by FY2030, positioning itself as a major player in the gold mining sector.
The Spartan Board has unanimously recommended that shareholders vote in favor of the scheme, provided no superior offer emerges and an independent expert confirms it is in their best interests. Key conditions for the deal’s completion include shareholder approval, regulatory clearance, and court approval. The merger will also bring leadership changes, with Spartan’s Executive Chairman, Simon Lawson, joining the Ramelius Board as Non-Executive Deputy Chair.
The transaction aligns with Ramelius’ strategy of expanding its production base through acquisitions of high-quality assets. The combination of Spartan’s excess processing capacity and high-grade underground resources with Ramelius’ operational expertise and infrastructure is expected to enhance cash flow and long-term growth. The enlarged group will also benefit from an improved market position, a stronger balance sheet with over A$500 million in pro-forma net cash, and increased liquidity for investors.
Pending regulatory and shareholder approvals, the merger is set to be completed in the coming months, creating a robust mid-tier gold producer with significant exploration and development potential.
(Source: Company's Report)
Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.
