Top ASX 200 Gold Stocks go for a Transformational Combination

Team Veye | 17-Mar-2025

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)

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