TORONTO, ONTARIO--(Marketwired - Nov. 7, 2016) - Sparton Resources Inc. (TSX VENTURE:SRI) ("Sparton" or the "Company") reports the results of its Special Shareholder Meeting held on November 3, 2016. A total of 50,711,378 votes were cast in respect of each of the three resolutions put before the Company's shareholders and approvals were given with at least 50,546,478 votes cast in favour of each resolution, representing more than 99.9% of the total votes cast on each resolution.
With shareholder approvals received, the Company and its 89.8% owned subsidiary, VanSpar Mining Inc. ("VMI"), will now proceed to close the previously announced transaction by which a private investment corporation will directly fund the acquisition of 100% of the shares of JD Holding Inc. ("JDH") for US$3.3 million, pay US$605,000 to VMI and, within 20 business days after closing, contribute US$2.0 million of working capital to JDH. On closing, VMI will cause 82% of the JDH shares to be transferred to the private investment corporation, with the remaining 18% being retained by VMI. JDH is the parent company to an international group of vanadium battery manufacturing and distribution companies.
These transactions are expected to be closed by mid-November, 2016.
See Sparton news release dated September 27, 2016 for further background.
Sparton and VMI look forward to the success of JDH and its reactivation of the Prudent Energy vanadium flow battery ("VRB") manufacturing businesses. Recent developments in the fast growing, large scale, industrial electricity storage industry, have highlighted VRB as the lowest cost, safest and most efficient type of battery technology solution available today. The success of the 8 megawatt hour VRB installation at the Zhangbei Project in China, which was constructed by Prudent Energy and commissioned by staff engaged by VMI, has successfully operated now for over 10 months since commissioning, and is clearly a showpiece for large scale energy storage systems and the recognition of VRB electricity technology applications in an international arena.
VRB is the ideal solution to increase renewable energy power generation efficiencies through electricity storage and has multiple other applications. Prudent has installed batteries in 12 different countries and has over 800,000 hours of testing and quality assurance development already completed. It has a large portfolio of intellectual property registrations supporting its existing and new technology development.
Among future resource related activities, Sparton and VMI's work going forward will include, but not be limited to, the evaluation of vanadium related resources which could serve as sources of raw material for the manufacturing of vanadium flow battery systems.
Sparton is pleased to welcome George Wesley Roberts who has been appointed back to its Board of Directors after a short absence. Wes is a seasoned mining and financial engineer with many years of experience in resource production, evaluation, legal and financing matters. He has served on the company advisory committee continuously and we are delighted to have him return as a full board member.
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.
Information set forth in this news release involves forward-looking statements under applicable securities laws. The forward-looking statements contained herein include, but are not limited to, financings and transactions being pursued, and all such forward-looking statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this news release are made as of the date hereof and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. Although the Company believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct and, accordingly, undue reliance should not be put on such forward-looking statements. This news release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein.
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