SEI Sintana Energy Inc

Sparton Resources Inc. (TSX VENTURE:SRI) (the "Company" or "Sparton") announced
today that it has entered into discussions with Dundee Resources Limited
("Dundee") related to a possible re-financing package for Sparton's subsidiary,
Sparton Energy Inc. ("SEI"). SEI's interests, all of which are in China, include
(i) the secondary uranium production joint venture with the China National
Nuclear Corporation, (ii) the Guojiaping vanadium- uranium project and (iii) the
Huajun germanium operations.


FINANCING 

The initial stage of this re-financing would contemplate an injection of new
working capital into SEI and ultimately a consolidation of SEI's current debt by
the issue of Redeemable Convertible Preference Shares ("RCPS") of SEI. Dundee
would acquire the current debt and the related security currently held by Quam
Ventures (BVI) Limited and a private investor totalling approximately US$3.2
million and Dundee would convert the debt into redeemable RCPS as part of a
re-financing totalling up to US$12 million. The private investor has been
offered the opportunity to similarly convert its portion of the debt and the
response has been positive. If Dundee acquires the current SEI debt, the debt
security provisions would be the same as with the current lenders and would be
guaranteed by the Company and all its assets. When the Preference Share
financing is completed, the Company would be released from its guarantee and the
related security.


Discussions are being held with Dundee to inject additional working capital into
SEI at this time, in an amount to be determined, and the working capital funds
to be so raised would be used (i), to complete the bulk testing and feasibility
study for uranium production from Lincang area waste ash, (ii) to complete a
feasibility level evaluation of the Guojiaping vanadium - uranium deposits and
(iii) to upgrade and increase SEI's interest in the Huajun germanium operations
to 85%.


Finalizing of this financing package with Dundee, would provide Sparton with a
focussed program for developing SEI's China assets. This would be a significant
step toward ultimately turning SEI into a stand-alone uranium/vanadium/germanium
producer in China with the objective of providing Sparton shareholders with a
direct participation in SEI's assets and business through an initial public
offering or business combination with another company in a parallel business. 


THE COMPANY

Sparton is currently rationalizing its global portfolio of projects.
Consideration has been given to both international commodity and capital market
conditions. The Company, through SEI, has developed a unique portfolio of
resource opportunities in China in the three commodities, uranium, vanadium and
germanium which all have very strong domestic and international market
fundamentals.


SEI's primary focus in China is (i) to advance the secondary uranium recovery
program at Lincang through finishing a bulk sample test and completion of a
final feasibility study, (ii) to complete the evaluation of the Guojiaping
exploration license which contains a large, shale-hosted vanadium deposit with
associated uranium mineralization and (iii) to improve cash-flow at the
producing Huajun germanium operations.


In Canada, Sparton continues to explore its Marmion Gold Project with a summer
exploration program that has produced initial positive results from early
prospecting work. The Company claim groups are contiguous to the claim holdings
of Brett Resources Inc. which owns a major gold deposit currently under
development, and is located approximately 25 km north of the town of Atikokan in
northwestern Ontario. 


SPARTON RESOURCES INC. 

Listed: TSX Venture Exchange

Trading Symbol: SRI

This press release contains "forward-looking statements" within the meaning of
applicable Canadian securities legislation. Generally, forward-looking
statements can be identified by the use of forward- looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget", "scheduled",
"planned", "estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases or state
that certain actions, events or results "may" ,"could", "would", "might" or
"will be taken", "occur" or "be achieved". Forward-looking statements are
subject to known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, closing of transactions,
performance or achievements of the Company to be materially different from those
expressed or implied by such forward-looking statements, including but not
limited to: risks related to exploration and development, the environment, local
and foreign government regulation, currency fluctuation infrastructure, capital
markets and additional funding requirements and the departure of key executives
as well as those factors discussed in the Company's documents filed on SEDAR
(www.sedar.com).


Although the Company has attempted to identify important factors that could
cause actual results to differ materially from those contained in
forward-looking statements, there may be other factors that cause results not to
be as anticipated, estimated or intended. There can be no assurance that such
statements will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking statements. The
Company does not undertake to update any forward-looking statements that are
contained herein, except in accordance with applicable securities laws. Further
information on Sparton Resources Inc. is available at www.sedar.com.


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.

Sintana Energy (TSXV:SEI)
Historical Stock Chart
Von Mai 2024 bis Jun 2024

Sintana Energy (TSXV:SEI)
Historical Stock Chart
Von Jun 2023 bis Jun 2024