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Sparton
Resources Inc. (TSX VENTURE:SRI) (the "Company")
and its China based partner Beijing John Hanseng Investment Consulting
Company ("BJH") reported today that they have signed a Memorandum
of Understanding ("MOU") with ARCN, the Airborne Remote Sensing
Institute branch of the China National Nuclear Corporation ("CNNC"),
to increase their current joint interest in the secondary uranium
recovery program in China from 60% to 80%.
Under the original agreement
(see news release dated April 6, 2006) Sparton had agreed to
invest a minimum of CAD$100,000 dollars in the initial research
program to identify and do initial field sampling of prospective
waste ash and phosphate rock deposits or products in PRC. The Company
has now exceeded this obligation and with the advanced testing
program underway on ash from the Xiaolontang power station in
Yunnan, a much higher level of expenditures is anticipated, leading
to bulk sampling and prefeasibility level activities.
ARCN has
indicated it does not wish to participate financially in this phase
of the program but will continue to support the work with infrastructure,
staff, and coordinated support from CNNC. As a consequence, ARCN
has agreed to reduce its future commercial interest in the program
from 40% to 20%. After completion of the bulk sampling phase and
ongoing program activities and commissioning of a bankable feasibility
study (Phase 2) ARCN will however, have the option to regain the
diluted 20% interest by paying Sparton 2.5 times its total expenditures
incurred in Phase 2 or remain a 20% interest holder. It is estimated
that the Phase 2 program will cost approximately USD$500,000 and
will be completed prior to year end 2007.
All the signatories to
the MOU further agreed to allow Sparton to assign its joint 80%
interest with BJH to its British Virgin Islands registered subsidiary,
Sparton Resources International Inc.
Sparton's international exploration
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.
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