Sparton Resources Inc.

Sparton Resources Inc.

April 14, 2010 09:27 ET

Sparton Receives Final Payment for Sale of Luxi Gold Project, China

TORONTO, ONTARIO--(Marketwire - April 14, 2010) - Sparton Resources Inc. (TSX VENTURE:SRI) (the "Company") announced today that it has received the final payment for the sale of a 39% interest in Yunnan Sparton Minerals Company Limited ("YSM"), the Sino-foreign joint venture company which owns the Luxi Gold Project in Yunnan Province, southwest China (see Sparton News Release dated March 24, 2010).

The total sale price of 14 million RMB or approximately USD$2.044 million, was payable in cash in two tranches. The first payment of 12 million RMB was received on signing the sale agreement and the second payment of 2 million RMB was received on April 12, 2010, when all documentation related to the transfer of ownership of YSM was completed.

The purchaser, Joyful Ocean Industrial Group Limited ("JOG"), a Hong Kong registered company, is controlled by Luxi Hai Hua Development Company, the owner and operator of the local Luxi Gold Mine in the YSM exploration area. 

The Company retains a right of first refusal to become a 35% participant in any future expansion and development of the Luxi Gold Mine. Further, Sparton has a right of first refusal to participate, with an interest equal to 35% of JOG's YSM interest, in any new mine development by YSM in the YSM area that, at the feasibility stage, is forecast to be equal to or exceed three times the current Luxi Gold Mine production level.


Sparton is currently rationalizing its global portfolio of projects. Consideration has been given to both commodity and market conditions and management's time limitations.

The primary focus in China is to improve cash-flow at the producing Huajun germanium operations, and complete the evaluation of the Guojiaping Exploration Licence which contains a large, shale hosted vanadium deposit with associated uranium mineralization. At Lincang, the secondary uranium recovery program will advance through finishing a bulk sample test and completion of a final feasibility study. 

Sparton is extremely well positioned to capitalize on its favourable standing in the Chinese mining industry with additional opportunities being evaluated on an ongoing basis. All of these projects have a positive environmental footprint and are receiving strong support from all levels of PRC government.

Domestically, Sparton continues to explore its Marmion Gold Project, which is contiguous to the claim holdings of Brett Resources Inc. ("Brett"), and is located approximately 25 km north of the town of Atikokan in northwestern Ontario.

Brett management recently announced its intention to recommend a friendly take over by Osisko Mining Corporation with a view to fund and advance its Hammond Reef deposit, now reported to contain 6.7 million ounces of gold. The Atikokan area is now being recognized as having excellent exploration potential. Sparton is also continuing its non conventional uranium and germanium recovery evaluations in western Canada.


Listed: TSX Venture Exchange

Trading Symbol: SRI

This press release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Generally, forward-looking statements can be identified by the use of forward- looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "planned", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may" ,"could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, closing of transactions, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to exploration and development, the environment, local and foreign government regulation, currency fluctuation infrastructure, capital markets and additional funding requirements and the departure of key executives as well as those factors discussed in the Company's documents filed on SEDAR (

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws. Further information on Sparton Resources Inc. is available at

This news release and the information contained herein does not constitute an offer of securities for sale in the United States and securities may not be offered or sold in the United States absent registration or exemption from registration.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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