Sparton Resources (TSX VENTURE:SRI) (“Sparton” or the “Company”) is pleased to announce that it has approved a Memorandum of Understanding (“MOU”) for the advanced evaluation and possible acquisition of a 70% interest in the 16 square km. Yao Wan (“YW”) Polymetallic Exploration License, in the Zhen’an area of Shaanxi Province, China.
The Memorandum of Understanding (“MOU”) has been entered into by a newly incorporated subsidiary of the Company, VStar Industries (“VStar”), and Warwick Mining Development Company (“WMD”) a local Chinese private company.
Under the terms of the MOU, VStar will be responsible for all advanced exploration and evaluation expenditures up to the point of a China compliant feasibility study suitable and accepted for application for a vanadium mining license at Yao Wan. Further development of a mining operation would be paid for jointly as to 70% V Star and 30% WMD, with each party credited for its past expenditures.