Spartan Resources (ASX:SPR) secured firm commitments from institutional investors to raise AU$220 million through a share placement to accelerate the restart of operations at its Dalgaranga gold project in the Murchison Region of Western Australia, according to a Thursday filing with the Australian bourse.

The company will issue about 166.7 million new shares at AU$1.32 apiece, representing a 7% discount to its last closing price of AU$1.42 before the placement, the filing said.

Spartan's largest shareholder, Ramelius Resources (ASX:RMS), will participate in the placement, increasing its stake to 19.9% from 18.3%.

The company will have a pro-forma cash position of AU$290 million upon completion of the placement.

Out of the funds, AU$130 million will be allocated to underground mine development, AU$70 million for infrastructure works, and AU$41.5 million for an expanded drilling campaign at Dalgaranga through 2025 and 2026.

The shares are expected to be allotted on Dec.12.

Spartan Resources' shares gained more than 3% in recent Thursday trade, while shares of Ramelius Resources rose past 6%.

Price (AUD): $1.47, Change: $+0.05, Percent Change: +3.17%