Ramelius takes stake in Spartan, rules out takeover

Australian gold miner Ramelius Resources (ASX: RMS) has acquired an 8.9% stake in rival Spartan Resources (ASX: SPR), which is developing the Dalgaranga gold project in Western Australia.

The miners said the purchase of 98.5 million shares in Spartan was a strategic investment as the company is constantly evaluating gold assets in the state.

Ramelius attempted in March to take over Canada-based Karora Resources (TSX: KRR), which owns the Beta Hunt gold mine and Higginsville gold operations in Western Australia. The parties ended talks with no agreement reached.

The company tried its luck again in May. This time, it disclosed a merger bid for Westgold Resources (ASX: WGX) that had been in the works for month. Negotiations didn’t succeed and in the meantime, Westgold merged with Karora — Ramelius’ previous interest.

The gold producer, which has a market capitalization of A$2.2 billion ($1.5bn), ruled out any immediate plan for a takeover of Spartan.

“Subject to the actions of Spartan or any third party, Ramelius has no current intention to acquire control or make a takeover offer for Spartan,” it said in the statement.

Ramelius owns and operates two gold production and processing hubs at Mt Magnet and Edna May. It also mines and hauls ore from satellite operations at Penny, Marda & Symes Gold mines, and is currently developing its Rebecca/Roe and Cue Gold projects.

Shares in Ramelius jumped on the news, closing 1.6% higher on Friday to A$1.92 each.