The will-they-won’t-they couple of Western Australia’s gold sector is about to put a ring on it.
Street Talk can reveal Ramelius Resources chief executive Mark Zeptner and Spartan Resources boss Simon Lawson were in advanced talks over the weekend, flanked by their respective advisers, and seeking to agree terms around a merger.
A deal is slated to be announced to the ASX as early as this week, sources said.
Spartan Resources Managing Director Simon Lawson at the Dalgaranga Gold Project in WA’s Murchison Region. AFR
Sources said Ramelius shareholders had driven increased engagement between the two companies after the company handed down a trading update on its Mt Magnet gold mine on Tuesday that reflected lower production than anticipated alongside higher-than-expected costs and capital expenditure.
Ramelius is capitalised at $2.54 billion and its shares last traded at $2.20 a share. It last year acquired a 19 per cent stake in Spartan, which has a $2 billion market value and whose stock closed on Friday at $1.60.
Neither company was available to comment on Sunday.
RMS Price at posting:
$2.20 Sentiment: None Disclosure: Not Held
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