Ramelius Acquires Spartan for $1.5 Billion

Deal News | Mar 17, 2025 | EIN

Ramelius Acquires Spartan for $1.5 Billion

Australian gold mining company, Ramelius Resources Ltd., has announced its acquisition of Spartan Resources Ltd. for $1.5 billion. The acquisition is aimed at capitalizing on the rising prices of gold, which have soared due to increasing purchases by central banks and heightened market demand. Valued at 2.4 billion Australian pounds, the deal is priced at an 11.3% premium to Spartan's last close. This strategic move will see Ramelius acquiring Spartan's Dalgaranga Gold Project, positioning the combined entity as a leading gold producer in Australia, targeting over 500,000 ounces annual production by 2030. The transaction aligns with a trend of increased M&A activity in the gold sector, evidenced by recent high-value deals, such as Northern Star’s purchase of De Grey Mining and Equinox Gold's acquisition of Calibre. Post-deal, Spartan shareholders will hold a 39.5% stake in the new company.

Sectors

  • Gold Mining
  • Mergers & Acquisitions

Geography

  • Australia – Both companies involved are Australian-based, and the acquisition concerns assets located in Western Australia.

Industry

  • Gold Mining – The acquisition is centered around gold mining operations, with both Ramelius and Spartan engaged in the exploration and processing of gold.
  • Mergers & Acquisitions – The article discusses a significant acquisition deal within the gold mining sector, reflective of broader M&A trends influenced by rising gold prices.

Financials

  • 2.4 billion Australian pounds ($1.5 billion) – The transaction value for the acquisition of Spartan by Ramelius.
  • 11.3% – The premium of the transaction value over Spartan’s closing price on March 14.
  • 500,000 ounces – The projected annual gold production of the combined entity by 2030.
  • 39.5% – The percentage of the combined company's shares to be owned by Spartan shareholders post-acquisition.
  • $3,000 per ounce – The current market price of gold contributing to increased M&A activity.

Participants

NameRoleTypeDescription
Ramelius Resources Ltd.Bidding CompanyCompanyAn Australian gold mining company involved in exploration, mining, and processing with operations in various gold mines.
Spartan Resources Ltd.TargetCompanyAn Australian gold mining company with its flagship project being the Dalgaranga Gold Project in Western Australia.