Sphere Resources Inc.

Sphere Resources Inc.

April 26, 2010 10:10 ET

Sphere Resources Inc.: Agreement for the Purchase of Two Salars in the Puna Region in Argentina for Development of Sodium Carbonate for the Manufacture of Lithium Carbonate and Sodium Sulphate

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 26, 2010) -

Sphere Resources Inc. (TSX VENTURE:SPH.H) (the "Company") announces that it has entered into an Agreement with CanAustra Holdings Limited ("CHL") to acquire CHL's 30.25% holding of Salar de Pocitos ("Pocitos") and Salar de Rio Grande ("Rio Grande") in the Province of Salta, North West Argentina. The concessions are well served by infrastructure with access by sealed road and nearby high voltage electricity, gas pipelines and rail with easy access to the Argentinean industrial cities to the south and to the countries to the north. The City of Salta has an international airport with regular services to Buenos Aires.

Over US$2m has already been invested by the owners on Pocitos and Rio Grande in conducting significant investigations and assessments of the concessions.

The Pocitos concession covers an area of 98 km2. A drilling program carried out under the supervision of the Richard Kleinwort Consultancy Group over two properties covering 200 ha in 2007.

The Rio Grande Concession has a total area of approximately 170 km2. To date, the drilling program at Salar de Rio Grande has been over an area of only 360 hectares over ten years ago under the supervision of Geological & Ceramic Services Pty Ltd. It is proposed that a NI 43-101 be carried out on Rio Grande in the next few months.

A qualified person has not done sufficient work to classify any of these resources as current mineral resources. However, a qualified person is currently reviewing past exploration and drilling results for Sphere.

Pocitos and Rio Grande are located in the elevated and arid Puna region in the north western part of the country close to the Chilean border and form part of a number of highly mineralized Salars in production and development. Within the vicinity are: Salars Cauchari Olaroz, Pocitos, Arizaro and Incahuasi currently owned by Lithium Americas Corp. which has a Preliminary Prospectus and NI43-101; Salar de Olaroz currently being developed by Orocobre Limited; Salar de Rincon previously owned by Admiralty Resources NL and now being developed by the Sentient Group a private equity investment group specializing in resources; Salar de Hombre Muerto where FMC Corporation has a lithium producing plant; and adjacent and across the border in Chile is Salar de Atacama, the largest Lithium producer in the world.

The transaction involves the issue of common shares in Sphere over time based upon the following milestones:

  1. a NI43-101 Report on the resources at Salar de Rio Grande ("Rio Grande") within 120 days of the date of the Agreement. Rio Grande holds a minimum in-situ resource of 1.4 million tonnes of sodium sulphate to be used in the manufacture of sodium carbonate for the producers of lithium carbonate in the Puna. Sphere will issue 10 million common shares upon the release of the NI43-101 report confirming the minimum resource.
  2. a feasibility study on the development of Salar de Pocitos ("Pocitos") to be made available to Sphere within 120 days of the date of the Agreement. Sphere will issue 3 million common shares to CHL 12 months from the date of the agreement. CHL will use its best endeavours to enable Sphere to make an offer to all other shareholders of the Company holding the rights to the Pocitos concessions in Argentina after Pocitos has been brought into production.
  3. a feasibility study on the development and production of sodium carbonate for the manufacture of lithium carbonate within 24 months from the date of the Agreement. Sphere will issue 12 million common shares to CHL in 24 months from the date of this Agreement.

Mr. Stevens is pleased to have Sphere's involvement in this opportunity and stated "I have been intimately involved with the advancement of the prolific Puna Region of Argentina for over 15 years. The acquisition of CHL's holding in Salar de Pocitos and Salar de Rio Grande deposits located in this rich area, which is widely recognized as the world's next large scale, low cost Sodium Sulphate, Sodium Carbonate and Lithium Carbonate brine resource; will provide Sphere with a timely opportunity to enter the Industrial Minerals space, particularly now that there is a fundamental shift in the way the world is embracing electric cars which will contribute to the upward demand pressure to supply Lithium for batteries".

Mr. Stevens is a Director of CHL and has a beneficial interest in 13,335 CHL shares, representing 0.27% of the issued capital, held by his wholly owned company Central Asset Management; and 86,364 CHL shares, representing 1.8% of the issued capital, held by CanAustra Investments Limited where he also holds the position of Managing Director. 

About Sphere Resources Inc.

Sphere Resources Inc. is focused on identifying and appropriating exploration targets and other high quality assets in major global mining camps with a particular emphasis on precious metals. It is currently involved in exploring for gold mineralization in the Red Lake District of Ontario.

The proposed transaction remains subject to, among other things, meeting certain milestones, receipt of all requisite regulatory and other approvals, including stock exchange approvals.

On behalf of Sphere Resources Inc.

Malcolm L Stevens, Executive Chairman and President

Statements in this press release other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in mineral exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.

Neither the NEX Board of the 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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