Sparton Resources Inc. announced on April 17, 2008 that it has signed the final Share Purchase Agreement to acquire 85% share interest in the private Yunnan Province PRC based coal and germanium producer - Hua Jun Coal Industry Co.Ltd. (HJ). The Chinese company is also the producer of locally marketed thermal coal from one of its three operating coal mines in the area.
The agreement has been signed between the two private owners of Hua Jun Coal Industry, and Yunnan Blue Bay Semiconductor Technology Co. Ltd. (YBBS), China-based company which is 100% owned by Sparton Resources wholly owned subsidiary Sparton Energy Inc., registered in the British Virgin Islands.
As a result of the merger, the original owners of HJ (private individuals) will retain 8% and 7% share ownerships in HJ respectively. Once 60% of the full agreed purchase price for the Hua Jun in the amount of 22 million RMB (approximately $US1.9 million) has been paid, BVI-owned YBBS corporation will take full control of the operations. It is anticipated that the BVI-controlled company will be fully in charge of HJ by mid August 2008.
Since the date when Sparton Resources signed the initial share acquisition agreement, the price for germanium metal increased from about $US 1250 per kg to over $US 1400 per kg, and the demand continues to grow. Sparton now is becoming a profitable producer in the rapidly developing germanium market.
