SRI Sparton Resources Inc

SPARTON RESOURCES INC. (TSX VENTURE:SRI), (the "Company') is pleased to announce
that, effective June 17th, 2011, it has signed a Purchase Option Agreement (the
"Agreement") with Purple Gold Corporation ("PGC") where under PGC will acquire
all of the Company's rights and obligations related to the SBD gold project near
Battle Mountain, Nevada. PGC is a newly incorporated private British Columbia
company which will seek a public listing in the near future.


Under the terms of the Agreement, PGC will make cash payments to Sparton
totalling US $500,000 over the next 6 months, and issue free trading shares of
PGC with a value of US $250,000 within 18 months of June 17, 2011. Additionally,
PGC will also issue to the Company the greater of 500,000 free trading shares of
PGC or shares having a value of US $250,000 on or before December 15, 2012.


Alternatively, at PGC's option, PGC may make cash payments totalling US $500,000
in two equal tranches on or before the dates above and not issue any shares to
Sparton.


The Company will also receive a 1% Net Smelter Return Royalty on any production
from the SBD property.


WORK COMMITMENT 

Under the terms of the Agreement, PGC will also spend a minimum of US $750,000
dollars for exploration on the SBD property within 12 months of any PGC
financing that raises a minimum of US $1,000,000. Further it has agreed to pay
the cost of a surface geochemical sampling program (to a maximum of US $30,000)
to complete the geochemical coverage of the entire property and cover several
very strong geophysical targets located in earlier Sparton work programs. This
work will begin immediately and be completed by Sparton staff.


DISCUSSION

The transaction is part of the Company initiative to rationalize its mix of
exploration project assets and focus on core businesses and programs in the
specialty metals field.


The SBD Project claim group is in the heart of the Battle Mountain Gold Region
and is located near Newmont's past producing Trenton Canyon Mine. Past work
programs by the Company and others located a semi continuous zone of gold
mineralization on the west side of the claim group that is identical to Trenton
Canyon style mineralization. 2007 drilling and high resolution geophysics by
Sparton confirmed earlier results and located at large untested resistivity
anomaly on the eastern part of the claims which will be covered by the current
geochemical sampling program. The Company has permitted over 20 drill sites for
new work and PGC will receive all available exploration data to plan their
program. 


The previous Sparton work program included 7 reverse circulation drill holes
which confirmed earlier work by previous operators and a complete compilation of
all historical data available for the property. These included 33 metres of 1.12
g/t gold in Hole SBD 07-05, and 10.7 metres of 1.91 g/t gold in Hole SBD 07-03.
(See Sparton News Release dated June 13, 2007).


The Company looks forward to collaborating with the PGC technical staff to
further test the new targets developed at SBD.


The Agreement is subject to any required regulatory approvals. 

Sparton's international exploration, development, and evaluation programs are
being carried out under the direct supervision of A. Lee Barker, P. Eng., P
Geol., the Company's President and CEO, who is a Qualified Person under National
Instrument 43-101 and has approved the technical content of this release.


Statements in this release that are forward-looking statements are subject to
various risks and uncertainties concerning the specific factors disclosed under
the heading "Risk Factors" in the Company's filings with Canadian securities
regulators. Such information contained herein represents management's best
judgment as of the date hereof based on information currently available. The
Company does not assume any obligation to update any forward-looking statements,
save and except as may be required by applicable securities laws.


This news release and the information contained herein does not constitute an
offer of securities for sale in the United States and securities may not be
offered or sold in the United States absent registration or exemption from
registration.


We Seek Safe Harbour.

Sparton Resources (TSXV:SRI)
Gráfica de Acción Histórica
De Oct 2024 a Nov 2024

Sparton Resources (TSXV:SRI)
Gráfica de Acción Histórica
De Nov 2023 a Nov 2024