Sparton and Osisko Mining Corporation Finalize Joint Venture Agreement for Atikokan Gold Area Properties $1 Million Dollar Budget for 2011 Exploration Program
NEWS RELEASE SPARTON RESOURCES INC.
MARCH 21, 2011
SPARTON AND OSISKO MINING CORPORATION FINALIZE JOINT VENTURE AGREEMENT FOR ATIKOKAN GOLD AREA PROPERTIES
$1 MILLION DOLLAR BUDGET FOR 2011 EXPLORATION PROGRAM
SPARTON RESOURCES INC. (TSX.V “SRI”), (the “Company’) is pleased to announce today that it has executed a joint venture agreement ( “JV”) with Osisko Mining Corporation (“Osisko”, TSX-“OSK”, “EWX”-Deutsche Boerse) pursuant to which Osisko will spend $1,000,000 on exploration during 2011 to maintain its option (the “Option”) to acquire up to a 70% interest in approximately 7500 hectares of mining claims held under option from third parties or wholly owned by Sparton (the “Properties”) in the Atikokan Gold Area, Ontario.
The Properties straddle Osisko’s Hammond Reef Project property which hosts a NI 43-101 compliant inferred resource of 6.7 million ounces of gold (259.4 million tonnes at a grade of 0.8 grams per tonne, using 0.3 grams per tonne cut-off), of which 97% lies within 300 metres of surface.
The terms of the JV mirror the original terms of the Letter Of Intent (“LOI”) signed with Osisko on November 10, 2010 (see Sparton News Release dated November 11, 2010).
Osisko will be the manager of the project. A management committee will be formed during the Option Period with two representatives from each party. This management committee will be formed shortly to review all past exploration data generated for the West Hammond and Clement Lake Claim Groups and plan the next phase of exploration. It will be responsible for reviewing programs submitted by Osisko and for approving and evaluating the results of all programs. In the event of a tie, Osisko shall have the casting vote during the Option Period. Upon acquiring a 60% or a 70% interest in the Property, a joint venture would be formed between Osisko and Sparton with pro rata cost participation.
DISCUSSION
“Ongoing work at Hammond Reef by Osisko has clearly indicated the potential for a new gold mining camp in the Atikokan area.” stated Lee Barker, Sparton’s President and CEO. “We are committed to working diligently with Osisko to advance the potential of the Properties”.
Mr. Barker further added: “Osisko currently has 19 drills operating in the area demonstrating its commitment to developing both the Hammond Reef deposit itself and conducting new exploration on their claim areas. We continue to believe the Sparton Properties can add new opportunities and value to Osisko’s overall potential in this developing gold mining camp.”
For more information contact:
A. Lee Barker, President and CEO Edward G. Thompson, Chairman Tel.: 416-366-3551 Tel.: 416-366-6083 Fax: 416-366-7421 Fax: 416-366-2713 Mobile: 416-716-5762 E-mail: [email protected] E-mail: [email protected]
SPARTON RESOURCES INC. Company website: www.spartonres.ca Listed: TSX Venture Exchange Trading Symbol: SRI
Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" in the Company's filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume any obligation to update any forward-looking statements, save and except as may be required by applicable securities laws.
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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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