Spartan Resources strategic asset sale

Spartan Resources (ASX:SPR) has entered a binding agreement to sell its non-core Glenburgh and Egerton Gold Projects in Western Australia to Benz Mining Corp. (ASX:BNZ). The deal, valued at up to AUD 15.6 million, includes cash and equity components. This divestment allows Spartan to concentrate on its Dalgaranga Project, while retaining a stake in Benz.

Spartan's strategic realignment and future plans

Spartan Resources has strategically decided to sell its Glenburgh and Egerton Gold Projects to Benz Mining for up to AUD 15.6 million, which includes cash, equity, and contingent payments. This aligns with Spartan's focus on its high-priority Dalgaranga Project, known for its high-grade gold deposits like Never Never and Pepper. The sale, expected to complete by December 2024, will result in Spartan holding a 15% stake in Benz, allowing continued influence on the projects’ future. Additionally, Spartan anticipates a non-cash accounting impairment of around $17 million from this transaction. The company remains committed to its SPARTA values, emphasizing strategic discipline and community-focused operations.

Executive insights on strategic divestment

The Glenburgh and Egerton Projects have not received the focus they deserve due to our success at Dalgaranga. We are confident Benz has the capabilities to unlock the potential of these assets and are pleased to retain an interest in their future success.