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Sparton
Resources Inc. (TSX VENTURE:SRI) (the "Company")reported today
that it has signed an Exclusivity and Confidentiality Agreement
(the "ECA") with Akanani Investment Corporation
(Proprietary) Limited ("AIC") to cooperate jointly and exclusively
with AIC in a long term program for the evaluation of the possibility
of extracting uranium and other valuable metals from waste coal
ash and other deposits of high metal content waste material in
the Republic of South Africa, and elsewhere on the African continent.
Sparton
will supply its technical expertise and experience in evaluating
extraction of uranium and other metals from such materials using
technology developed by its strategic process engineering partner
Lyntek Inc. of Denver Colorado USA. AIC will assist in the procuring
of suitable waste deposits, licences, permits and authorizations
necessary for the advancement of the program. AIC will also provide
financial consulting services to
assist in identifying suitable investors for commercialization
of production from such deposits and liason with the appropriate
South African regulatory agencies having jurisdiction over such
activities.
The
ECA provides for the Company and AIC to enter into one or more
comprehensive agreements specifying additional technical and commercial
details for the program on or before August 31, 2007. It is planned
to jointly incorporate a new JV Company to oversee and finance
the program with initial ownership in this company as to AIC 51%,
and Sparton 49%, with project investment contributions and the
JV Company's intellectual and capital
assets owned
pro rata by the Company and AIC.
ABOUT
AKANANI
AIC
is a South African-based private company holding
(directly or indirectly) interests in a range of mining, commercial
and industrial enterprises, which is owned, managed and controlled
by commercially astute and experienced persons who are classified
as historically disadvantaged South Africans (within the meaning
of the South African Mineral and Petroleum Resources Development
Act, No 28 of 2002) ("MPRDA"). AIC is accordingly qualified in
terms of South African Black Economic Empowerment ("BEE") criteria
and applicable policies to contribute significantly to the future
establishment in South Africa of a viable business utilising
the technology provided by Sparton for the exploitation of mineral-rich
waste dumps and tailings, as well as assisting financially and
by way of the introduction of Sparton to other potential investors,
including (but not limited to) the South African government.
As
part of its portfolio of mineral holdings AIC and its two BEE partners
are in the process of selling their 26% interest in the Platreef
platinum group metals project through Akanani Mining (Pty) Ltd.
This project, located in northern South Africa, was originally
evaluated by AfriOre Limited (until early 2007, a Canadian listed
entity) and subsequently acquired by Lonmin PLC in a transaction
valued at over $3 Billion.
WASTE
ASH IN SOUTH AFRICA
Research
by Sparton has shown there are very large waste deposits of coal
ash in South Africa produced by the burning of large amounts of
low grade lignitic or brown coals for electric power generation.
Coal fired power stations produce most of the electrical energy
used in South Africa. Very little of the waste ash material produced
is recycled into reusable products. Information available on one
power generating organization alone indicates approximately 30
million tonnes of waste ash are produced annually and only about
5% of this material is recycled. Additional research on uranium
and other heavy metal contents for the waste ash deposits is currently
underway but initial studies have provided chemical analysis information
on some lignitic coals having up to 400 parts per million uranium
(approximately 1 pound per tonne U308).
This
research work will continue, and lead to an extensive sampling
program of various waste ash deposits in the coming months.
DISCUSSION
The
current agreement between Sparton and Akanani is believed to be
unique in South Africa and both AIC and the Company are optimistic
that significant amounts of high uranium waste ash will be identified
early in the technical program. Sparton is pioneering the evaluation
of non conventional sources of uranium on an international scale
and now has agreements in place to participate in these programs
in seven countries around the world (see news releases dated
June 4, 2007 and May 24, 2007). With its strong background and
success in the mineral industry in this region, AIC is an ideal
partner for Sparton to jointly advance this project in South Africa,
and elsewhere on the African continent.
Sparton's
exploration and non conventional uranium extraction programs in
China, Central Europe and South Africa are 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.
FOR
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