spartan resources (ASX:SPR) has secured $220 million in funding from institutional investors to accelerate the restart of operations at its Dalgalanga Gold Project in Western Australia. The offering was priced at $1.32 per share and received strong support from domestic and international resource-focused investors. In particular, Ramelius resources (ASX:RMS)It is Spartan’s largest shareholder, and its stake increased to 19.9% ​​through this offering.

The funding will support underground mine development at the high-grade NeverNever and Pepper deposits, alongside infrastructure upgrades and factory refurbishments. The company will also begin an aggressive drilling campaign to expand resources across the Dargalanga site, including expansion into the wider Gilbeys complex.

Spartan’s interim executive chairman, Simon Lawson, said the capital raise was critical to the company’s growth. “This funding puts us firmly on track to restart production and become the next leading mid-tier high-grade gold producer on the ASX,” Mr Lawson said. “This proceeds will enable us to strengthen operational readiness at Dargalanga and realize its full potential through continued active exploration.”

The Dalgalanga Gold Project, located 65 km north-west of Mt Magnet, has a total estimated high-grade mineral resource of 2.32 million ounces at an average grade of 9.32 g/t gold from the Never Never and Pepper deposits. Spartan’s short-term plans include a restart feasibility study, expected by mid-2025, with a final investment decision expected shortly thereafter.

With this financing, Spartan is well-capitalized with an estimated cash position of $290 million and no debt. Allotted shares are scheduled to be issued on December 12, 2024.

The stock is trading at $1.52, up 6.69%.