OTC Bulletin Board : SPVEF


November 13, 2009 09:01 ET

Spur Ventures Updates Progress in the Yichang Maple Leaf Chemical Integrated Phosphate Project and Announces Third Quarter 2009 Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 13, 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 third quarter ending September 30, 2009.

Net loss was ($356,484) or ($0.006) per share in Q3-2009 versus ($566,820) or ($0.009) per share in Q2-2009 and ($468,688) or ($0.008) per share in Q3-2008. Q3-09 net cash used for operating activities was $210,457 or $0.003 per share compared to $257,130 or $0.004 per share in 2Q-09 and $461,762 or $0.008 per share in Q3-08 demonstrating Spur's continued commitment to control costs. Spur had $22,329,057 ($CDN 0.40 per share) in cash and short-term investments as of October 31, 2009.

Spur is also pleased to announce that significant progress has been made in advancing our Yichang Maple Leaf Chemicals ("YMC") project by a joint working group consisting of representatives from Spur, our Chinese joint venture partner, Hubei Yichang Phosphorus Chemical Industries Group Company ("YPCC") and government officials from various departments of Yichang City.


Updated Mining Plan and Value of Two Mines Approved

Yichang City and Hubei Province governments have formally approved an updated mining plan which allows up to 2.0 M mt of phosphate rock to be mined each year at the Dianziping and Shukongping mines and a Resource Report setting the net present value of these two mines at ¥353.2 M ($US 52M) using the Central Ministry of Land and Resources approved Discount Rate of 8.0%.

An updated mining plan and a current value of the two mines are required before the request to transfer the two mining licenses from YPCC to YMC can submitted for approval by all three levels of government authorities.

The Resource Report was completed by Headman Consultants of Beijing, a firm accredited to the Central Ministry of Land and Resources using guidelines specified under China's mining laws, and confirmed phosphate rock reserves of

  • 30.23 M mt with average %P2O5 of 25.03% for the Dianziping mine and 
  • 30.03 M mt with average %P2O5 of 24.05%, for the Shukongping mine.

As noted above, based on these figures and the mining plan, Headman has calculated the net present value of the two mines to be ¥353.2 M ($US 52M). The value of the mines at the time of signing the joint venture agreement in 2003 was ¥57 M (approved Discount Rate of 10%). The higher current value largely reflects the five-fold increase in the market price of rock phosphate during the same time period.

Skukongping Mining License Extension

The Shukongping mining license was due to expire on October 9, 2009, but its extension has now been recommended by Yichang City and Hubei Province and is being formally reviewed by the Central Ministry of Land and Resources in Beijing who will set a new expiry date.

The Dianziping mining license is valid until February, 2014.

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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