TORONTO (CP) -- Sparton Resources Inc. [TSXV:SRI] has sold a major stake in its Luxi gold project in China to the Asian country's largest gold producer.
Sparton said Monday it had signed a letter agreement with the Zhao Jin Mining Industry Co. Ltd. to sell 41% of the Luxi project in Yunnan province for about C$2.8 million.
In the same deal, Sparton's Luxi mining partner, Yunnan Nuclear Geological Exploration Brigade 201, will sell a 10% interest to Zhao Jin. After the transactions close, the Luxi project will be 51% owned by Zhao Jin, 39%owned by Spartan and 10% by Yunnan Nuclear.
The Luxi project as been valued at just under C$7 million, the Toronto-based junior miner said.
Monday's transactions are expected to close by May 25.
Sparton Resources is a diversified mineral explorer with a portfolio of Chinese, Mexican, and Canadian base and precious metals properties, including gold projects in Nevada. The company also holds an interest in an undeveloped natural gas field offshore Nova Scotia and a royalty interest in the Blizzard uranium deposit in British Columbia.
Sparton shares were halted at 26 cents on the TSX Venture Exchange pending n news of the deal.
(c) The Canadian Press 2006