Sparton Resources Inc. has executed an agreement with Minvesco LLC, a private Mongolian company, to evaluate Minvesco's new Zoson Teeg (ZT) rare earth element (REE) discovery located approximately 350 kilometres southwest of Ulan Bator, Mongolia.
Under the terms of the option agreement the company will conduct a due diligence evaluation of the ZT licence area which will involve detailed mapping, sampling and possibly an induced polarization survey. The due diligence period will expire on Jan. 15, 2010, and involves minimum expenditures by Sparton of $25,000 (U.S.). If the results of the due diligence program are positive Sparton may elect to continue with the option and earn up to a 60-per-cent interest in the ZT licence by expending a total of $1.5-million (U.S.) and making payments to Minvesco totalling $325,000 (U.S.) over a three-year period.
The Zoson Teeg exploration licence, in the Dundgobi area, has an area of 4,500 hectares and was explored independently by Minvesco in reconnaissance programs completed in 2006 to 2007.
In 2007, geological mapping, limited prospecting and rock chip sampling located an area with highly anomalous REEs associated with the contact zone of a large alkaline intrusive complex intruding volcanic and sedimentary rocks. A subsequent detailed ground magnetic survey outlined the intrusive complex contact zone and located several structures that appear to be related to the sample locations with anomalous REE analyses.
Out of a total of 32 random grab samples taken in the area and analyzed for the most common REEs lanthanum cerium and yttrium, 22 samples (69 per cent) returned anomalous values ranging from 0.03 per cent to 0.41 per cent total REE. These samples were reported to be associated with altered alkaline granitic rocks, sediments and volcanics. Some are described as topaz greisens with strong hematitic and clay mineral alteration. These descriptions suggest contact metasomatic type mineralization as the host for the REE. The due diligence program will attempt to identify the geologic controls for the location of the rare earth minerals and assess the size potential of the area to host commercial mineralization. A minimum of 300 samples will be taken systematically over the strongly altered areas.
The ZT evaluation is a new and important development in Sparton's specialty metals program which currently involves profitable germanium production at its 51-per-cent-owned Huajun operations in Yunnan, China. Huajun waste contains anomalous quantities of rare earths and the potential for their economic recovery from the germanium operations is under study at this time. As well, the anomalous REE values reported earlier from the New Brunswick Whiskey project area continue to be reviewed.
All analyses reported here were done for Minvesco using atomic adsorption techniques by the Vinogradov Institute of Geochemistry in Irkutsk, Russia. The science centre there is part of the Siberian branch of the Russian Academy of Sciences. The new samples will likely be analyzed by the SGS international standards laboratory in Ulan Bator or a similar institution. New results will be reported when all data are available.
Sparton's international exploration, development and evaluation programs are being carried out under the direct supervision of A. Lee Barker, PEng, PGeol, the company's president and chief executive officer, who is a qualified person under National Instrument 43-101.
We seek Safe Harbor.
Pinetree buys 2.5 million more Sparton shares
2009-10-30 10:24 ET - News Release
See News Release (C-PNP) Pinetree Capital Ltd
Mr. Larry Goldberg reports
PINETREE CAPITAL LTD. ACQUIRES SECURITIES OF SPARTON RESOURCES INC.
Pinetree Capital Ltd. acquired ownership of 2.5 million common shares of Sparton Resources Inc. and 2.5 million common share purchase warrants, on Oct. 5, 2009. Each warrant entitles the holder thereof to acquire one additional common share until Oct. 5, 2011, at a price of 15 cents each. In the event that the warrants are fully exercised, these holdings represent approximately 6.3 per cent of the total issued and outstanding common shares of Sparton as of Oct. 5, 2009, calculated on a partially diluted basis assuming the exercise of the warrants only. As a result of this transaction, Pinetree and its joint actors held, as at Oct. 5, 2009, an aggregate of 9,803,167 common shares of Sparton, including the common shares, and rights to acquire an additional 4,566,667 common shares of Sparton upon the exercise of convertible securities, including the warrants, representing a total of 14,369,834 common shares of Sparton, or approximately 17.6 per cent of such shares outstanding as of Oct. 5, 2009, calculated on a partially diluted basis assuming the exercise of the convertible securities only. Pinetree's direct ownership, following the transaction (including the common shares and the warrants), represents a total of 10,236,500 common shares of Sparton, or approximately 12.9 per cent of such shares outstanding as of Oct. 5, 2009, calculated on a partially diluted basis assuming the exercise of the warrants only.
These transactions were made for investment purposes and Pinetree and each of its joint actors could increase or decrease their respective investments in Sparton depending on market conditions or any other relevant factor.
Sparton samples up to 13.55 g/t Au at West Hammond
2009-10-26 10:27 ET - News Release
Mr. Lee Barker reports
SPARTON REPORTS ENCOURAGING GOLD VALUES FROM INITIAL SAMPLING AT WEST HAMMOND PROJECT IN NORTHERN ONTARIO
Sparton Resources Inc. has released initial sampling results from its West Hammond Contact (WHC) property located in Northern Ontario. The WHC claim group is contiguous to the claim holdings of Brett Resources Inc., approximately 25 kilometres north of the town of Atikokan.
Highest values reported from this initial batch were 13.55 and 12.4 grams per tonne gold. During the initial prospecting and sampling program new mineralization was discovered on the WHC claims along strike from the previously reported Stubby zone (see Sparton news release in Stockwatch on July 20, 2009).
Named the New Silicified zone, this mineralization is located 1.0 kilometre from the Stubby zone showing and consists of highly sheared and altered sericitized and ankeritized mafic volcanics containing 2-per-cent to 20-per-cent disseminated pyrite. It is a wide (greater than 25 metres) altered shear zone located at the contact between Finlayson volcanics and the granitoid rocks of the Marmion batholith. These latter rock types host the nearby 5.2-million-ounce gold resource owned by Brett.
The highest values were obtained from composited grab samples taken along this zone and include:
* 13.55 rams per tonne -- quartz veins in sericite-ankerite schist 300 metres northeast of the Stubby zone;
* 2.76 grams per tonne -- quartz ankerite vein zone in ankerite sericite fuschite schist;
* 4.04 grams per tonne -- Stubby zone composite;
* 2.61 grams per tonne -- New Silicified zone pyritic sheared volcanics;
* 12.4 grams per tonne -- New Silicified zone quartz vein composite;
* 0.99 gram per tonne -- pyritic shear adjacent to New Silicified zone.
Numerous other samples of altered and sheared volcanics and granitic rocks taken along the Stubby "structure" returned values of 0.30 to 0.75 parts per million gold, indicating that a broad zone of gold mineralization is associated with this major contact.
The new mineralization has been discovered by basic prospecting and sampling along the Stubby trend. Currently a team of 10 samplers and prospectors are doing initial reconnaissance coverage of both the WHC and Clement Lake claim groups in advance of the winter season. Over 300 samples have been taken to date and new data are forthcoming. Approximately 20 to 30 kilometres of line cutting is nearly completed along the Stubby trend which will cover the New Silicified zone. Systematic mapping and soil sampling are in progress over this grid. Mechanical trenching and stripping will begin shortly to properly expose and trace the mineralized exposures. Systematic chip and channel sampling will be done in these stripped areas.
Results reported here are all from grab samples composited from a number of smaller samples taken over a several-square-metre area at each sample location. All analyses were done by the ALS-Chemex laboratory in Thunder Bay, Ont. An internal quality assurance/quality control program consisting of chain of custody and blank and duplicate sample analyses has been instituted by Sparton staff to insure sample integrity and accuracy of analytical results.
Sparton's management is extremely please with these initial results. They confirm the occurrence of a very strong zone of shearing, alteration and related gold mineralization associated with the contact zone between the Marmion batholith and the Finlayson volcanic belt. The company claim holdings cover approximately 20 kilometres of this zone.
Sparton's international exploration, development and evaluation programs are being carried out under the direct supervision of A. Lee Barker, PEng, PGeol, the company's president and chief executive officer, who is a qualified person under National Instrument 43-101.
The TSX Venture Exchange has accepted for filing documentation with respect to a non-brokered private placement announced Sept. 24, 2009.
Shares: 8,116,667
Purchase price: 12 cents
Warrants: 8,116,667 share purchase warrants to purchase 8,116,667 shares
Warrant exercise price: 15 cents for a one-year period
Hidden placees: 13
Finder's fee: An aggregate of $28,920 in cash and 322,500 finders' warrants payable to Minvestec Capital Corp. and Jones, Gable & Company Ltd. Each finder's warrant entitles the holder to acquire one common share at 15 cents for a two-year period.
Sparton Resources closes $212,000 financing
2009-10-19 12:18 ET - News Release
Mr. A. Lee Barker reports
SPARTON CLOSES SECOND TRANCHE OF NON-BROKERED PRIVATE PLACEMENT FINANCING
Sparton Resources Inc. has closed the second and final tranche of the non-brokered private placement (see Stockwatch Sept. 24, 2009). On Oct. 16, 2009, the company issued 1,766,667 flow-through units at a price of 12 cents per unit for aggregate gross proceeds of $212,000.
The flow-through units comprise one common share of the company and one share purchase warrant. Each warrant is exercisable for one additional common share at a price of 15 cents per share until Oct. 18, 2010. The company paid commissions of $10,260 and issued 98,333 broker warrants to registered dealers for services rendered in relation to this financing. Each of the broker warrants will entitle the holder to purchase one common share of the company at an exercise price of 15 cents at any time up until Oct. 17, 2011.
Ich hab mal die letzten Pressemitteilungen von Sparton gepostet.
Sparton Resources closes $212,000 financing
Sehe ich positiv, hat etwas länger gedauert als geplant. Dies ist in Anbetracht der aktuellen Weltwirtschaft aber akzeptabel.
Sparton Resources 8.11-million-share private placement
Spült 1 Mio. in die Kasse
Sparton samples up to 13.55 g/t Au at West Hammond
Gute Ergebnisse, allerdings keine Angaben wie es jetzt mit dem Projekt weitergehen soll
Pinetree buys 2.5 million more Sparton shares
Weitere Finanzierung, positiv
Sparton signs options for Mongolia REE property
Auf den ersten Blick etwas irritierend. Zu Minvesco LLC oder Zoson Teeg habe ich keinerlei weitere Informationen auftreiben können. Der Deal an sich scheint nicht schlecht zu sein, Reward/Risk sieht sehr gut aus für Sparton.
Auf der Homepage (www.spartonres.ca) gibt es auch noch zwei neue Berichte, 2009 2nd Quarter MD&A und 2009 2nd Quarter Financials. Diese werde ich mir auch noch vornehmen und dann Sparton eine Email mit einigen Fragen bezüglich der Projekte zusenden.
Falls noch jemand was wissen will, einfach Frage posten.
Sparton Signs Agreement for Evaluation of Vanadium Development Programs in Xiushui County Jiangxi Province, China
TORONTO, ONTARIO--(Marketwire - Dec. 2, 2010) - SPARTON RESOURCES INC. (TSX VENTURE:SRI)(the "Company") is pleased to announce today that it has executed a Memorandum of Understanding (MOU) with the local government of Xiushui County, Jiangxi Province and owners of the Jiangxi Rentian Mining Company vanadium operations to undertake a comprehensive technical and commercial review of Rentian's operations and the general vanadium development program in the area.
Xiushui County has five vanadium related projects currently under development including Sparton's Guojiaping vanadium exploration program which is joint-ventured with Jiangxi Nuclear Exploration Team 267 (see news releases dated August 3, 2010 and August 11, 2010). Rentian has the most advanced project and has developed and test operated a new (completed late 2009), fully permitted, medium sized vanadium oxide processing facility in the county with a production capacity of approximately 800-1000 tonnes per year of chemical grade (+98.5%) V2O5. The operations are currently shut in due to lack of working capital. Rentian's assets also include two permitted mining operations, one open pit and one underground, which host vanadium mineralization and were the sources for the test material processed in the plant prior to shutdown.
Sparton's team of consulting metallurgists, mining and geological engineers and its commercial manager visited the area during the week of November 18th, 2010 and provided the Xiushui Government and Rentian with a comprehensive proposal for the evaluation and possible restructuring of the vanadium production assets and mining operations. This proposal was accepted by all parties and officially recognized in the MOU.
Sparton's staff have provided a comprehensive checklist of required data to the county and Rentian in order to properly complete the review. The Company has also started a comprehensive sampling program of raw vanadium feed material in the two mines and has sampled in the plant at various stages in processing operation to review the plant performance.
This work is expected to take approximately 6 weeks to complete.
DISCUSSION
Sparton recognizes a significant opportunity in this program as the Rentian plant is in excellent condition and was built to specifications designed, engineered and commissioned by Wuhan University, one of China's leading mineral processing institutions. There is a complete installation of modern process control and monitoring equipment, and full supporting infrastructure at the site. All operating and environmental permits are in place. Subject to a positive review of all aspects of operations, the Company sees the project as an investment opportunity that can fit well with the future development of the large vanadium deposit at Guojiaping (10 km from Rentian) and potentially lead to Sparton being a consolidator of vanadium production in the area.
Sparton Resources Inc. is a Canadian mining and exploration company involved in gold exploration in Canada and, operating (through its subsidiaries) a producing germanium mine in China. It is developing a very large vanadium deposit in China and has spearheaded reactivation of secondary uranium recovery businesses in China and Canada from radioactive waste such as coal ash, mine waste and tailings, and other types of material.
Company website: www.spartonres.cagemäß § 34 WpHG darf der Autor zu jederzeit Short- oder Long-Positionen in der/den behandelte(n) Aktie(n) halten.
Mar 23, 2011 09:57 ET Sparton Announces Management Appointments in Subsidiary Company, VanSpar Mining Inc.
USD $1.5 Million Loan Account Fully Repaid
TORONTO, ONTARIO--(Marketwire - March 23, 2011) - Sparton Resources Inc. (TSX VENTURE:SRI) ("Sparton" or the "Company"), announced today management appointments for its 74.2% percent owned British Virgin Island ("BVI") subsidiary company, VanSpar Mining Inc. ("VanSpar"). VanSpar holds various rights and assets to the Rentian and Guojiaping vanadium projects in Jiangxi Province China. (See Sparton news releases dated December 2, 2010, March 10, 2011 and March 14, 2011.)
Mr. Adrian Lungan will assume the position of President and Chief Executive Officer of VanSpar. Mr. Lungan is a graduate geologist and Chairman of Alpha Prime Investments Ltd., a BVI registered company which owns 18.8% percent of VanSpar. During a successful international resource industry career spanning over 30 years, Mr. Lungan has specialized in gold, copper, diamond and base metals programs in Australia, Asia, China, Africa, South America and the Pacific Rim. As founder of Uramin Inc., he spearheaded the development of the world class Trekkopje uranium deposit in Namibia, which was later acquired by AREVA of France for USD $2.6 Billion. He also established CCEC Ltd. which was acquired by Regent Pacific of Hong Kong for USD $125million.
Mr. Lungan held senior technical and corporate management positions with several major mining companies from 1989 to 1997 and negotiated the first gold mining agreement with the government of Laos for Newmont Mining Corporation. He also established and managed the Placer Dome Inc. / Placer Pacific Ltd. joint-venture in Indonesia and was appointed as a director of the Placer Dome Inc. / Placer Pacific Ltd Joint Venture Company. He has also been associated with several Canadian based companies, serving as President of Paramount Ventures and Finance Inc. and as General Manager, Indonesia of Pacific Amber Resources Ltd.
Other VanSpar appointments include Mr. A. Lee Barker, President and Chief Executive Officer of the Company, who will become Chairman of VanSpar, Mr. Charles Ge, Sparton director and China Country Manager, who will become Managing Director of VanSpar, and Mr. Richard D. Williams, Sparton director, has also been named to the VanSpar board.
A total of 550,000 VanSpar share purchase options have been granted to officers, directors and consultants of the Company (300,000) and VanSpar (250,000). Each option will allow the option holder to purchase one common VanSpar share at a price of USD $0.25 for 5 years from March 24, 2011.
FINANCIAL UPDATE, QUAM LOAN REPAID
The Company further reports that its subsidiary, Sparton Energy Inc., has fully repaid the remaining USD $1.5 million portion of the Quam Ventures BVI Ltd. loan (the Loan") which originally closed on October 2, 2008 (please see Sparton news releases dated October 3, 2008 and July 28, 2009). All security pledged to Quam against the Loan has been released back to the Sparton.
Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" in the Company's filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume any obligation to update any forward-looking statements, save and except as may be required by applicable securities laws.
April 21, 2011 09:44 ET Sparton Announces Debt Reduction and Restructuring
TORONTO, ONTARIO--(Marketwire - April 21, 2011) -Sparton Resources Inc. (TSX VENTURE:SRI) (the "Company") is pleased to announce that its wholly-owned subsidiary, Sparton Energy Inc. ("SEI") has restructured the 2009 $1.7 million loan financing provided by an arm's length third party (the "Lender") (see Company news release dated July 28, 2009). The restructuring includes the repayment of the sum $500,000 of the original $1.7 million principal and the issuance of a new loan (the "New Loan").
The unsecured NewLoan will be issued in the principal amount of $1.3 million and evidenced by a new debenture. This new debenture will carry interest at 6.0% annually, payable in arrears, on a quarterly basis - and is repayable on or before maturity on November 18, 2011.
Sparton management has undertaken not to enter into any transaction or obligation that would rank in priority to or equal to the New Loan, or impinge on Sparton's ability to make repayment, without prior written consent of the Lender. Sparton has also undertaken and agreed not to grant any security interests to third parties except subordinate to this NewLoan while the NewLoan remains outstanding.
Subject to regulatory approval the Company will issue to the Lender 1,200,000 one-half share purchase warrants. Two of these one-half share purchase warrants will entitle the Lender to purchase one common share of Sparton Resources Inc. for $0.25 per share for one year from the date of receipt of TSX Venture Exchange approval for the issuance of these warrants.
If any major financing, or asset sale completed by Sparton results in the Company having in excess of $1.5 million in cash net of the NewLoan, the NewLoan will be repaid immediately. In addition, if the Company sells its Huajun Germanium producing operations in China, it will pay the Lender 5% of the difference between Sparton's total investment in Huajun (estimated to be $USD 3.8Million) and the value received from the sale of Huajun, up to a maximum of $USD 50,000.
Sparton and Osisko Finalize $1.2 Million Joint Work Program for 2011 on Area Surrounding Hammond Reef Gold Deposit
May 17, 2011 (Marketwire) --
TORONTO, ONTARIO -- (Marketwire) -- 05/17/11 -- SPARTON RESOURCES INC. (TSX VENTURE:SRI), (the "Company') is pleased to announce that the 2011 exploration program on Sparton's claims in the Atikokan, Ontario, gold area have been finalized with Osisko Hammond Reef Gold Ltd. the operating subsidiary of Osisko Mining Corporation ("Osisko", TSX-"OSK", "EWX"-Deutsche Boerse). The properties straddle Osisko's Hammond Reef Gold Project property, which hosts a NI 43-101 compliant inferred resource of 6.7 million ounces of gold (259.4 million tonnes at a grade of 0.8 grams per tonne, using 0.3 grams per tonne cut-off), of which 97% lies within 300 metres of surface. The Sparton property package is subject to a recently executed joint venture agreement with Osisko. (See Sparton News release dated March 21, 2011).
WORK PROGRAM
Osisko, as the manager of the project, submitted a comprehensive $1.2 million dollar work program to the project management committee which gave its unanimous approval. The planned work will cover both the West Hammond and Clement Lake claims. It will consist of at least 3300 metres of new diamond drilling following up the discoveries made by Sparton on the West Hammond claims, as well as new exploration and follow-up on the prospective zones identified elsewhere on the claim areas. There are also provisions for a comprehensive airborne and ground geophysical program, new grid preparation and geochemical surveys, as well as provision for new stripping, trenching and additional drilling. A team of approximately 8 people will be assigned to the various work programs.
Field work at West Hammond is expected to begin in mid-May and with grid extension line cutting, soil sampling and induced polarization surveys in the northern part of the West Hammond claim area. Several areas of anomalous gold values were located by Sparton in this area in 2010. Assay results from prospecting (grab) samples taken during this indicated several new areas of anomalous gold mineralization. The Clement Lake program will begin later in the field season.
DISCUSSION
"Clearly, the past season's work at West Hammond by Sparton has indicated the potential for new discoveries in this emerging gold mining camp in the Atikokan area. Osisko's Hammond Reef program, with 20 drills operating in the property area, is one of the largest mineral development programs in North America" stated Lee Barker, Sparton's President and CEO. "We are excited and committed to working diligently with Osisko to advance the potential of the properties".
Sparton's domestic and international exploration, development, and evaluation programs are being carried out under the direct supervision of A. Lee Barker, P. Eng., P Geol., Sparton's President and CEO who is a Qualified Person under National Instrument 43-101. Mr. Barker has prepared the contents of this release.
June 22, 2011 09:17 ET Sparton Signs Option Agreement for Sale of Nevada Gold Project
TORONTO, ONTARIO--(Marketwire - June 22, 2011) -SPARTON RESOURCES INC. (TSX VENTURE:SRI), (the "Company') is pleased to announce that, effective June 17th, 2011, it has signed a Purchase Option Agreement (the "Agreement") with Purple Gold Corporation ("PGC") where under PGC will acquire all of the Company's rights and obligations related to the SBD gold project near Battle Mountain, Nevada. PGC is a newly incorporated private British Columbia company which will seek a public listing in the near future.
Under the terms of the Agreement, PGC will make cash payments to Sparton totalling US $500,000 over the next 6 months, and issue free trading shares of PGC with a value of US $250,000 within 18 months of June 17, 2011. Additionally, PGC will also issue to the Company the greater of 500,000 free trading shares of PGC or shares having a value of US $250,000 on or before December 15, 2012.
Alternatively, at PGC's option, PGC may make cash payments totalling US $500,000 in two equal tranches on or before the dates above and not issue any shares to Sparton.
The Company will also receive a 1% Net Smelter Return Royalty on any production from the SBD property.
WORK COMMITMENT
Under the terms of the Agreement, PGC will also spend a minimum of US $750,000 dollars for exploration on the SBD property within 12 months of any PGC financing that raises a minimum of US $1,000,000. Further it has agreed to pay the cost of a surface geochemical sampling program (to a maximum of US $30,000) to complete the geochemical coverage of the entire property and cover several very strong geophysical targets located in earlier Sparton work programs. This work will begin immediately and be completed by Sparton staff.
DISCUSSION
The transaction is part of the Company initiative to rationalize its mix of exploration project assets and focus on core businesses and programs in the specialty metals field.
The SBD Project claim group is in the heart of the Battle Mountain Gold Region and is located near Newmont's past producing Trenton Canyon Mine. Past work programs by the Company and others located a semi continuous zone of gold mineralization on the west side of the claim group that is identical to Trenton Canyon style mineralization. 2007 drilling and high resolution geophysics by Sparton confirmed earlier results and located at large untested resistivity anomaly on the eastern part of the claims which will be covered by the current geochemical sampling program. The Company has permitted over 20 drill sites for new work and PGC will receive all available exploration data to plan their program.
The previous Sparton work program included 7 reverse circulation drill holes which confirmed earlier work by previous operators and a complete compilation of all historical data available for the property. These included 33 metres of 1.12 g/t gold in Hole SBD 07-05, and 10.7 metres of 1.91 g/t gold in Hole SBD 07-03. (See Sparton News Release dated June 13, 2007).
The Company looks forward to collaborating with the PGC technical staff to further test the new targets developed at SBD.
The Agreement is subject to any required regulatory approvals.
Sparton Closes Initial Phase of Option Agreement for Sale of Nevada Gold Project
Company Appoints New Chief Financial Officer
Jul. 14, 2011 (Marketwire) --
TORONTO, ONTARIO -- (Marketwire) -- 07/14/11 -- SPARTON RESOURCES INC. (TSX VENTURE:SRI), (the "Company') is pleased to announce that effective July 11th 2011 it has closed the initial phase of the Purchase Option agreement (the "Agreement") with Purple Gold Corporation ("PGC") where under PGC may acquire all of the Company's rights and obligations related to the SBD gold project near Battle Mountain, Nevada for a combination of cash, shares and a net smelter royalty. (See Sparton News Release dated June 22, 2011).
PGC has completed the initial USD $125,000 cash payment to Sparton.
WORK PROGRAM
The surface geochemical sampling program approved by PGC has now been completed, resulting in the complete geochemical coverage of the entire property. Over 450 surface and rock chip samples were taken and results are expected in about 4-6 weeks. The new work has covered several very strong geophysical targets located in earlier Sparton work programs.
SPARTON APPOINTS NEW CHIEF FINANCIAL OFFICER
The Company is pleased to announce that effective immediately Mr. Winfield (Yongbiao) Ding CA, MBA, has been appointed Chief Financial Officer for Sparton.
Winfield was born in mainland China and completed his BA degree there. He received an HSBC scholarship in 1992 to attend the Chinese University of Hong Kong where he obtained his MBA degree. A resident of Canada since 2003, with a Canadian CA, Winfield has worked as a senior executive officer for a number of successful businesses in Canada, China and Hong Kong, and has strong business experience in banking, trading, manufacturing, marketing, financial reporting and taxation in these jurisdictions. Being fluent in Mandarin, Cantonese and English, he brings unique business and linguistic capabilities to Sparton.
Mr. Ding has been associated with Sparton for over 4 years and is fully familiar with its China operations and projects as well as its North American based projects. Sparton's board and staff welcome Winfield to the organization and look forward to benefiting from his experience, insight and direction going forward.
DISCUSSION
"The closing of the initial Phase of the SBD transaction and the appointment of Mr. Ding to Sparton's management team are consistent with the Company's focus on creating enhanced value in its China based Germanium production and Vanadium development program assets." stated A. Lee Barker Company President and CEO. "Strengthening our management team with a seasoned professional like Winfield and benefiting from the future development of our precious metals projects like SBD and Atikokan by strong development groups such as PGC and Osisko Mining Corp. will allow us to focus our efforts on the China based core asset programs and accelerate their development."
Sparton Closes Sale Agreement With American Consolidated Minerals Corp. for Interest in Sierra Rosario Project, Mexico
TORONTO, ONTARIO--(Marketwire - Aug. 15, 2011) - SPARTON RESOURCES INC. (TSX VENTURE:SRI) (the "Company') reported today that it has closed the agreement with American Consolidated Minerals Corp. ("ACM"), (TSX.V "AJC") for the acquisition of 50% of Sparton's 51% interest in the Sierra Rosario Property ("SRP"), located in the state of Sinaloa, Mexico (the "Acquisition"). Please see Sparton news release dated May 11, 2011. International Northair Mines Ltd. (TSX.V "INM") will hold the remaining 50% and are operators of the project. In consideration for INM waiving its pre-emptive right of first refusal to match the ACM Acquisition terms, Sparton has transferred a 1% interest in Sierra Rosario to INM.
ACQUISITION
ACM has completed a due diligence study on the SRP, received regulatory approval for the transaction, and given Sparton notice it will proceed with the acquisition.
The Company and ACM have agreed to amend the schedule of payments as stipulated in the original agreement, such that the ACM will complete the aggregate purchase consideration of $500,000 and 500,000 common shares paid to Sparton by March 1, 2012, with terms as follows:
On or before August 4, 2011, a cash payment of $100,000 and the delivery of 250,000 shares of ACM; (paid and shares issued)
On or before September 1, 2011, a further payment of $100,000;
Commencing October1st, 2011 and on or before the first day of every month thereafter, a monthly payment of $50,000 until an aggregate cash payment of $500,000 is completed. For further clarity, the last monthly payment of $50,000 shall be made on or before March 1, 2012.
In consideration of amending the cash payment terms as requested by ACM, Sparton will receive a further cash payment of $30,000 when ACM completes the acquisition of the 50% interest in Sierra Rosario. ACM has also agreed that upon completion of an equity financing of a minimum of $1.5 million before March 1, 2012, the amended payment schedule will be accelerated, such that all unpaid amounts will be due and payable immediately, and the balance of 250,000 shares of American Consolidated will be issued concurrently, subject to regulatory approvals. All securities issued pursuant to this Acquisition will be subject to a four-month hold period.
Sparton will also receive Net Smelter Return Production Royalties ("NSR") payable from ACM's share of any production on the SRP of:
3% of ACM's share of Base Metal Production
2% of ACM's share of Gold Production
1.5% of ACM's share of Silver Production
ACM will assume the responsibilities of being a 50% partner in the joint venture with INM and be subject to the existing joint venture terms.
The plus 500 hectare Sierra Rosario Property was explored by Sparton and INM over a four year period from 2004-2008. It lies within the Sierra Madre Occidental Mineral Belt of Sinaloa Province in northern Mexico, approximately 25 kilometres northwest of the town of Choix and 40 kilometres east of the town of Alamos. Both areas have a strong history of precious metals mining. There are several precious metal zones on the property with excellent drill targets already identified that represent areas of potentially bulk mineable silver and gold mineralization.
Sparton is looking forward to the successful development of the Sierra Rosario Project under this new ownership structure. ACM and INM are committed to advancing the program and with INM's experience and recent success in Mexico the Company is confident the work programs will proceed in an effective manner.
Sparton Provides Exploration Update on Company Claims Surrounding Hammond Reef Gold Deposit, Ontario
TORONTO, ONTARIO--(Marketwire - Sept. 12, 2011) - SPARTON RESOURCES INC. (TSX VENTURE:SRI), (the "Company') is pleased to report on progress for the 2011 exploration program on Sparton's claims in the Atikokan Ontario gold area with Osisko Hammond Reef Gold Ltd. the operating subsidiary of Osisko Mining Corporation ("Osisko") (TSX:OSK)(FRANKFURT:EWX). The claims straddle Osisko's Hammond Reef Gold Project property which hosts a NI 43-101 compliant inferred resource of 6.7 million ounces of gold (259.4 million tonnes at a grade of 0.8 grams per tonne, using 0.3 grams per tonne cut-off), of which 97% lies within 300 metres of surface. (See Sparton News release dated May17, 2011).
SURFACE WORK PROGRAM COMPLETED TO DATE
Osisko, as the program operator, has completed a significant portion of the comprehensive surface exploration program approved earlier by the project management committee. (See Sparton news release dated May 12, 2011). Approximately 2700 outcrops have been prospected and over 1400 whole rock samples have been taken on both the West Hammond and Clement Lake Claim groups. Assay results are available for about one third of these samples. To date, values up to 0.6 g/t Au were reported on the Clement Lake claims block.
To facilitate the prospecting and sampling 125 km of new grid lines were cut on the West Hammond claims. A basal till sampling program was also completed to explore till-covered areas representing potential extensions of known surface mineralization and to locate new mineralized zones.
A 27.5 line km soil sampling program is currently under way at the north end of the West Hammond Claim block in the Sawbill Grid Area where grab samples returned values ranging from 0.105 to 6.86 g/t Au. The mineralization is hosted in quartz veins at the contact between sheared altered volcanic and Marmion Batholith granitic rocks similar to mineralization found further southwest and on Osisko's Hammond Reef Property.
Similar mineralization has recently been located approximately 3 kilometres northeast of the South Silicified Zone. This zone is at least 300 metres long and extends from Osisko's property southwest onto Sparton claims. It is several meters wide and sampling assay results are pending. A spectral induced polarization survey is scheduled to begin shortly to trace this zone as well as locate others. Stripping and trenching are also being planned on some of these new occurrences.
NEW DRILLING PROGRAM
Osisko expects to begin a 3000 metre drilling program this autumn that will initially focus on deeper drilling under the mineralization identified by Sparton at the south end of the West Hammond grid in the South Silicified and Stubby Zone areas.
At least 5 to 6 holes are planned to test the depth extensions of these wide zones of mineralization and alteration identified by Sparton's 2009 and 2010 drill programs. Drilling may also be done on the newly mapped mineralization located on the Sawbill Grid area and in other areas once the geochemical and geophysical surveys are completed and all assay data is available.
DISCUSSION
"Clearly these new results from the ongoing work at West Hammond by Sparton and Osisko indicate the potential for new discoveries in this emerging gold mining camp in the Atikokan area. We look forward to the new drilling program and additional positive results for the work completed to date. Osisko's Hammond Reef program, with over 15 drills operating in the property area, is one of the largest mineral development programs in North America" stated Lee Barker, Sparton's President and CEO. "We are committed to working diligently with Osisko to advance the potential of the Properties".