Sparton announced that it has approved a Memorandum of Understanding (MOU) for the advanced evaluation and possible acquisition of a 70% interest in the 16-square kilometre Yao Wan Polymetallic Exploration License in the Zhen'an area of Shaanxi Province, China.
The MOU has been entered into by a newly incorporated subsidiary of Sparton, VStar Industries Inc. and Warwick Mining Development Company Ltd. (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% VStar and 30% WMD, with each party credited for its past expenditures.
Yao Wan Vanadium Project
The Yao Wan License has been extensively explored by WMD.
The license contains a Chinese Category 332 and 333 vanadium pentoxide (V2O5) mineral inventory, which may be considered under NI 43-101 as ‘Historical Estimates’. Six vanadium zones have been identified along an 11-kilometre strike length within a 9-square kilometre section of the Yao Wan License.