Spartan Resources (ASX:SPR) signed a binding agreement to sell its Glenburgh and Egerton gold projects in Western Australia to Benz Mining (ASX: BNZ) for up to AU$15.6 million in cash and scrip, according to a Monday filing with the Australian bourse.

The transaction consideration comprises AU$1 million in cash, AU$8.6 million of Benz CHESS depository instruments, and up to AU$6 million in contingent payments, the filing stated.

Upon the deal's completion, Spartan will own a 15% shareholding in Benz, the filing said. It will also be entitled to nominate a director to the Benz board.

Spartan is expected to incur a roughly AU$17 million non-cash accounting impairment expense against the carrying value of the Glenburgh and Egerton projects.

The deal is expected to close in December.