Business
Sparton Resources Inc. Agreement to Purchase Vanadium Mining License in Jiangxi Province, China
TORONTO, April 16, 2019 (GLOBE NEWSWIRE) -- Sparton Resources Inc. (TSXV.SRI) ("Sparton" or the "Company") is pleased to announce that its 90% owned subsidiary
About this update from Sparton Resources Inc.
[{"type":"text","content":" TORONTO, April 16, 2019 (GLOBE NEWSWIRE) -- Sparton Resources Inc. (TSXV.SRI) (\"Sparton\" or the \"Company\") is pleased to announce that its 90% owned subsidiary VStar Industries Inc. (“VSI”), has signed a binding term sheet to acquire 100% of the Bei An Mining License (“BAML”) in Jiangxi Province China. The BAML is a fully permitted 1.8 sq. kilometre vanadium mining license located in the Xiushui area of Jiangxi where the Company has been developing and evaluating vanadium opportunities for over 10 years. TERM SHEET AGREEMENT Under the terms of the agreement VSI will purchase 100% of the Xiushui Bei An Mining Company (“XBAC”) which in turn owns 100% of the BAML. The purchase price will be finalized after technical and commercial due diligence is completed by VSI and will be within the range of RMB 14-22 million (CDN$2.78-$4.37 million). Payment is contemplated to be in a series of tranches related to milestones in the reactivation of mining at Bei An, including full government approvals for the proposed operations. The binding term sheet will be replaced with a binding share purchase agreement subject to final due diligence and any necessary approvals which will be generated as due diligence proceeds. ABOUT THE BEI AN LICENSE BAML comprises a 1.8 km square area and covers a 1.3 km strike length of the lower Cambrian black shale (stone coal) horizon hosting vanadium mineralization in the area. It was developed by a series of eight surface trenches (total 570 cubic metres excavated) and five underground tunnels (total 254 metres length) which latter intersected the vanadium horizon 40-50 metres below surface. Underground mining in 2009-10 from three tunnels produced approximately 30,000 tonnes of mineralized material which was trucked to the nearby Rentian processing plant for vanadium recovery. No data is available for average grade of this material or amount of V2O5 produced but full sampling data (over 300 samples) from surface trenches and the underground workings are available. No surface or underground exploration drilling has been done on the property. Total Historical Estimates of resources calculated in 2005 by Jiangxi Provincial Bureau of Geology and Mineral Resources, Northwestern Brigade, on the BAML from surface to a 60 metre depth are 1,962,000 tonnes grading 0.87% V2O5 in China categories 122b and 333 ...