OTC Bulletin Board : SPVEF


May 14, 2009 08:30 ET

Spur Ventures Announces First Quarter 2009 Results and Business Updates

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 14, 2009) -

All amounts are expressed in US dollars, unless otherwise stated

Spur Ventures Inc. ("Spur" or the "Company") (TSX:SVU)(OTCBB:SPVEF) announced today its results for the first quarter ending March 31, 2009.

Net Income was ($736,000) or ($0.012) per share on revenues of $15,000 versus ($482,000) or ($0.008) per share on revenues of $104,000 in Q1-2008. The $254,000 difference in Net Income was largely due to decreased interest income of $131,000 due to lower interest rates and an $101,000 reduction in foreign exchange offset by a $286,000 decrease in operating expenses as Spur continues to control its costs.


Mining License Transfer

The mining licenses are state owned assets administered by SASAC (State-owned Assets Supervision and Administration Commission) and their transfer to a foreign controlled joint venture requires that the value of the mines (Resource Report) be current. The value of the mines was last assessed in late 2003 when the original Joint Venture agreement was approved.

A consulting firm accredited to the Central Ministry of Land and Resources has prepared a Resource Report which reflects the dramatic increase in the value of phosphate rock of approximately yens 300 ($US 44) per tonne since the original assessment was performed. The joint venture agreement contemplated such as change which may potentially increase the equity position of Spur's Chinese joint venture partner, Hubei Yichang Phosphate Chemical Co. Ltd. (YPCC).

The Central Ministry of Land and Resources has also requested that a mining development plan be submitted before the new value of the mines can be finalized. YPCC has engaged the China Northern Design Institute of Zhouzhou, Hebei Province to produce the plan which was not required at the time of the original valuation of the mines in 2003.

It is anticipated that the final Resource Report may be accepted by the Chinese authorities in the latter part of Q3-2009.

Loan Repayment from Chinese Joint Venture Partner

In April YPCC began repaying the yens 2.12 million ($309,723) in receivables and loans it owes Yichang Spur Chemicals (YSC) at a rate of yens 400,000 ($58,530) per month.

Spur Remains in a Strong Working Capital Position

As at March 31, 2009, the Company maintained a balance of cash and cash equivalents and short-term investments of $19.60 million, including $19.58 million deposits with major Canadian financial institutions (approx. $24.68 million Canadian dollars at the Q1 2009 quarter end exchange rate of one U.S. dollar to 1.2602 Canadian dollars), $12,000 in Chinese Renminbi Deposits and $7,000 in U.S. Dollar deposits.

As of April 30, 2009 Spur had approximately $20.35 million in cash and term deposits versus $20.80 million at YE08.

Spur continued its focus on controlling costs by reducing variable costs including travel, consulting and professional fees by a total of 25% relative to Q1-2008. Only wages were higher as a result of one time severance payments as the Company continued to downsize its China operations.

Spur Ventures Inc. aims to be the premier integrated fertilizer manufacturer in China, with plans to produce up to one million tonnes per year of high-quality compound phosphate fertilizer for domestic consumption.

This news release includes certain statements that may be deemed to be "forward-looking statements" regarding the timing and content of upcoming programs. Although Spur Ventures believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include phosphate and potash prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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