Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (17673)	4/14/2008 9:50:11 PM
From: LoneClone	Read Replies (1) \| Respond to of 193999

Spur Ventures Announces Strategic Partnership With Major Private Chinese Mining Company Mon Apr 14, 4:29 PM ca.news.finance.yahoo.com VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 14, 2008) - All Amounts Are Expressed in Canadian dollars, unless otherwise stated. Spur Ventures Inc. ("Spur" or the "Company") (TSX: SVU.TO)(OTCBB: SPVEF.OB) announced today in Beijing that the Company signed a binding Memorandum of Understanding with Zhong Chuan International Mining Company Ltd. ("Zhong Chuan") to complete an equity private placement and to pursue strategic investments in China and elsewhere in Spur's fertilizer business. Zhong Chuan, a private company, was founded by its current chairman, Mr. Sun Xinming in 1992. It has 18 domestic and overseas direct subsidiaries dedicated to prospecting and developing precious, nonferrous and ferrous metals and energy resources with a focus on gold and coal. This partnership with Spur is its first strategic investment in the booming Chinese fertilizer and agricultural sector. "It is clear to us that Spur must align itself with an influential and experienced Chinese company to ensure our success in China," Steven Dean, Spur's Chairman said at the signing ceremony in Beijing. "Zhong Chuan's initial investment in Spur will be a signal of its confidence in Spur and in Spur's future in the fertilizer business in China," Mr. Dean continued. "Zhong Chuan has considerable experience and success in developing mines in China and will work with Spur to advance Spur's interests in China," Dr. Rob Rennie, Spur's President & CEO stated. "Our primary focus will be to ensure that Spur's Sino-Canadian joint venture, Yichang Maple Leaf Chemicals (YMC) can start its two mines as soon as possible." Zhong Chuan will initially invest $ 11.34 million to acquire eighteen (18) million units ("Units") of Spur at $0.63 per Unit in a private placement which is expected to make Zhong Chuan Spur's largest investor. Each Unit will consist of one common share, plus one-half of a warrant ("Warrant") and one-half of a special warrant ("Special Warrant"). Each full Warrant is exercisable to purchase an additional common share at an exercise price of $0.90/share until May 31, 2010, and each full Special Warrant is exchangeable for an additional common share for an aggregate of 9,000,000 common shares at no additional cost to Zhong Chuan, subject to the conditions set out below. The 9,000,000 Special Warrants are immediately exchangeable for 9,000,000 common shares at no additional cost to Zhong Chuan on the completion of the formal transfer of the mining licences for the Shukongping mine & Dianziping mines (the "Mines") to Spur's majority controlled Chinese joint venture, Yichang Maple Leaf Chemicals Ltd. on or before April 14, 2009, but if issued these shares will effectively be held in escrow and cannot be transferred until the completion of the following milestones (collectively, the "Milestones") to the satisfaction of Spur: settlement of compensation arrangements for displaced miners, the acquisition of required lands in the area surrounding the Mines for the required beneficiation plant, storage and transportation facilities, and the receipt of required permits and approvals for the commencement of mining operations at the Mines. In addition, each Warrant will only be exercisable upon the completion of all of the Milestones. Zhong Chuan's investment significantly increases Spur's working capital position and strengthens its balance sheet. Funds will be used to advance Spur's strategy of flexible manufacturing tied to secure sources of raw material and is very timely considering the critical need globally and particularly in China to properly utilize fertilizers to increase crop production and lower rising food prices. As a result of this investment in Spur, Mr. Sun Xinming, Chairman of Zhong Chuan and a Chinese citizen, and Mr. Charles Yan, a Director of Zhong Chuan and a Canadian citizen, have been invited to join the Spur Board. All transactions are subject to all necessary regulatory approvals (including the acceptance of the Toronto Stock Exchange) and required shareholder approval. Spur Ventures Inc. aims to be the premier integrated fertilizer manufacturer in China, with plans to produce up to one million tonnes per year of high-quality compound phosphate fertilizer for domestic consumption in the central province of Hubei, China. These expansion plans include the development of the largest phosphate deposit in China, located near Yichang City. This news release includes certain statements that may be deemed to be "forward-looking statements" regarding the timing and content of upcoming programs. Although Spur Ventures believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include phosphate and potash prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Contacts Dr. Robert Rennie Spur Ventures Inc. Email: rrennie@spur-ventures.com Mr. Michael Kuta Spur Ventures Inc. (604) 697-6201 Email: mkuta@spur-ventures.com Website: www.spur-ventures.com