- Sparton Resources (SRI) has completed the earn-in and exercised its option to acquire 100 per cent of the 51-claim Bruell Property in Vauquelin Township, Quebec
- The company issued 1.5 million common shares, made $300,000 in cash payments to the vendors, and incurred $1.5 million in exploration expenditures on the claims in accordance with an option agreement
- Eldorado has also obtained a one-year extension on the Eldorado Option Agreement
- Sparton Resources Inc is an exploration and development stage company and has interests in exploration and evaluation properties in Canada and China
- Sparton Resources Inc. was unchanged at $0.055 at 11:20 AM ET
Sparton Resources (SRI) has completed the earn-in and exercised its option to acquire 100 per cent of the 51-claim Bruell Property in Vauquelin Township, Quebec.
The company issued 1.5 million common shares, made $300,000 in cash payments to the vendors and incurred $1.5 million in exploration expenditures on the claims in accordance with an option agreement entered into in August 2017.
The Bruell Property remains subject to a 2-per-cent net smelter royalty to the original vendors, subject to a buy-out of 50 per cent of the royalty for a cash payment of $1 million.
In December 2019, the company agreed to sub-option the Bruell Property to Eldorado Gold Corporation for three years, whereby Eldorado was to make the remaining cash payments to the underlying vendors on behalf of the company and fund the exploration expenditures committed by the company to the original vendors.
Eldorado has successfully completed its option commitments but has not yet exercised its option.
Therefore, Eldorado has requested, and Sparton has agreed, a one-year extension on the Eldorado Option Agreement.
In consideration of the extension, Eldorado has agreed to carry out a minimum of 4,000 metres of additional drilling as a new option commitment.
“Bruell’s strategic location in the Val D’Or East Gold Area and the synergies created by its close proximity to Eldorado’s Lamaque Operations are clearly among the key features that attracted Sparton to the project area,” said Lee Barker, President of the company.
“We are pleased with the systematic work carried out to date by Eldorado and believe that the added drilling planned for the 29 square kilometre property can enhance the prospects of discovering an economic gold deposit,” he added.
Sparton Resources Inc is an exploration and development stage company and has interests in exploration and evaluation properties in Canada and China.
Sparton Resources Inc. was unchanged at $0.055 at 11:20 AM ET.
