SOURCE: Spartan Gold Ltd.

January 12, 2011 15:18 ET

Hong Kong-Based RCG Holdings to Take 6.10% Equity Stake in Spartan Gold Ltd. for $6.5 Million USD (EUR 5 Million)

RCG Holdings Buys Into Spartan Gold

HONG KONG and SCOTTSDALE, AZ--(Marketwire - January 12, 2011) - Biometric and radio frequency identification (RFID) firm RCG Holdings said Wednesday it had agreed to buy 13m shares in US miner Spartan Gold (OTCBB: SPAG), or 6.10%, from Avalon Partners for USD 6.5m (EUR 5m) in stock. Following this investment, RCG will provide SPAG with its biometric technology, a move which will help its plans to introduce its products into the mining sector. Under the terms of the deal, RCG will pay Avalon 15.6m in new ordinary shares valued at HKD0.01 (USD0.001/EUR0.001) apiece, accounting for some 5.07% of its current capital and 4.82% of its enlarged equity. The transaction is scheduled to complete around 21 January 2011, subject to RCG's new shares being admitted to trading on the Hong Kong and the London stock exchanges. Country: USA Sector: Metals/Mining Target: Spartan Gold Limited Buyer: RCG Holdings Limited Vendor: Avalon Partners Limited Deal size in USD: 6.5m Type: Stakebuilding Financing: All-stock Status: Agreed

About Spartan Gold Ltd:

Spartan Gold Ltd. (OTCBB: SPAG) is a publicly traded U.S. based junior gold exploration and mining company with gold exploration and development activity initially centered in the northeast region of Alabama. The company is currently pursuing opportunities in the Carlin Gold Trend, Nevada. The superior Carlin Trend gold camp of Nevada is endowed with world class mineral deposits. The directors, management and advisers of Spartan Gold have over 90 years of combined experience in the exploration and development of global mining projects. Spartan's commitment to asset growth and increased shareholder value will be sustained by the development of highly prospective projects, accelerated exploration activities and the acquisition of viable resources. Spartan has selected an international board of directors experienced in undertaking exploration, development and funding of numerous energy and minerals projects around the world. The company is currently exploring additional acquisition opportunities.

Forward-Looking Statements: Except for statements of historical fact, this news release contains certain "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995, including, without limitation expectations, beliefs, plans and objectives regarding the development, use and marketability of products. Such forward-looking statements are based on present circumstances and on Spartan Gold Ltd. predictions with respect to events that have not occurred, that may not occur, or that may occur with different consequences and timing than those now assumed or anticipated. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, and are not guarantees of future performance or results and involve risks and uncertainties that could cause actual events or results to differ materially from the events or results expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, changes in metal prices, the ability to successfully fund any exploration activities, consumer and business consumption habits, the ability to fund operations and other factors over which Spartan Gold Ltd. has little or no control. Such forward-looking statements are made only as of the date of this release, and Spartan Gold Ltd. assumes no obligation to update forward-looking statements to reflect subsequent events or circumstances. Readers should not place undue reliance on these forward-looking statements. Risks, uncertainties and other factors are discussed in Spartan Gold Ltd. Form 10-K for its fiscal year ended December 31, and other documents filed from time to time by Spartan Gold Ltd. with the Securities and Exchange Commission.

For more information:

See our website www.spartangoldltd.com

Contact Information

  • Please contact:
    Investor Relations:
    Mr. Seth Shaw
    Tel: 917-796-9926
    Email: Email Contact