Spartan Resources Seals $1M Sale of Glenburgh and Egerton Projects to Benz Mining
Spartan Resources has completed the sale of its Glenburgh and Egerton gold projects to Benz Mining for $1 million in cash, a 15% equity stake, and potential contingent payments. This strategic move allows Spartan to sharpen its focus on its high-grade Dalgaranga Gold Project while maintaining influence through board representation at Benz.
- Sale of Glenburgh and Egerton projects completed for A$1 million cash and 33 million Benz CDIs
- Spartan acquires approximately 15% equity stake in Benz Mining
- Up to A$6 million in contingent payments tied to exploration milestones
- Nick Jolly appointed as Spartan’s nominee to Benz Mining’s board
- Transaction enables Spartan to concentrate on its flagship Dalgaranga Gold Project
Strategic Asset Sale Completed
Spartan Resources Limited (ASX: SPR) has officially completed the sale of its Glenburgh and Egerton gold projects in Western Australia to Benz Mining Corp (ASX: BNZ). The transaction, announced on 14 January 2025, involves an upfront cash payment of A$1 million, split evenly between immediate payment and a deferred amount due in 12 months, alongside 33 million Benz CHESS Depository Instruments (CDIs), representing roughly a 15% stake in Benz Mining.
This deal marks a significant portfolio reshaping for Spartan, allowing the company to divest non-core assets and redirect capital and management focus towards its high-grade Dalgaranga Gold Project, which has been the cornerstone of its recent operational turnaround.
Contingent Payments and Board Representation
Beyond the initial consideration, Spartan stands to receive up to an additional A$6 million in contingent payments. These payments are structured in three equal tranches, each triggered by Benz declaring Mineral Resource Estimates at increasing thresholds (500koz, 1,000koz, and 1,500koz at a minimum 2.0g/t gold cut-off) for the Glenburgh and Egerton projects. This arrangement aligns Spartan’s future earnings with Benz’s exploration success, effectively sharing the upside potential.
Further cementing its ongoing involvement, Spartan has nominated its General Manager of Geology, Nick Jolly, to Benz Mining’s board. Jolly’s appointment is notable given his instrumental role in Spartan’s discovery of the high-grade Never Never and Pepper gold deposits at Dalgaranga, signaling Spartan’s commitment to supporting Benz’s near-term exploration efforts.
Focus on High-Grade Growth at Dalgaranga
Spartan’s Executive Chairman, Simon Lawson, emphasised the strategic rationale behind the sale: freeing up resources to concentrate on Dalgaranga, which hosts a combined high-grade underground Mineral Resource Estimate of 2.32 million ounces at 9.32g/t gold. The project has demonstrated strong growth potential, with recent discoveries such as the Freak Prospect enhancing its resource pipeline.
Dalgaranga’s proximity to existing processing infrastructure and its high-grade deposits underpin Spartan’s vision for a sustainable, long-term operation that can deliver robust returns. The sale of Glenburgh and Egerton thus represents a deliberate pivot towards maximising value from Spartan’s flagship asset.
Market and Strategic Implications
For Benz Mining, acquiring Glenburgh and Egerton injects promising growth assets with demonstrated potential for high-grade underground ounces. The transaction provides Benz with immediate scale and exploration upside, supported by Spartan’s geological expertise through board representation.
From an investor perspective, Spartan’s equity stake in Benz offers exposure to the upside of these projects without the operational burden, while the contingent payments provide a performance-linked financial buffer. However, the realisation of these contingent payments depends on Benz’s ability to delineate substantial mineral resources, which remains an exploration risk.
Bottom Line?
Spartan’s divestment sharpens its focus on Dalgaranga while maintaining upside exposure through Benz equity and board influence.
Questions in the middle?
- How will Benz Mining’s exploration progress at Glenburgh and Egerton impact Spartan’s contingent payments?
- What valuation does the market assign to Spartan’s 15% stake in Benz Mining post-transaction?
- Could Spartan’s board representation at Benz lead to deeper collaboration or future joint ventures?
