MAJOR NewsSphereResources Inc.: Agreement for the Purchase of Two Salars in the PunaRegion in Argentina for Development of Sodium Carbonate for theManufacture of Lithium Carbonate and Sodium Sulphate4/26/2010 10:12:01 AM - Market Wire
VANCOUVER, BRITISH COLUMBIA, Apr 26, 2010 (MARKETWIRE via COMTEX News Network) --
SphereResources Inc. (TSX VENTURE: SPH.H) (the "Company") announces that ithas entered into an Agreement with CanAustra Holdings Limited ("CHL")to acquire CHL's 30.25% holding of Salar de Pocitos ("Pocitos") andSalar de Rio Grande ("Rio Grande") in the Province of Salta, North WestArgentina. The concessions are well served by infrastructure withaccess by sealed road and nearby high voltage electricity, gaspipelines and rail with easy access to the Argentinean industrialcities to the south and to the countries to the north. The City ofSalta has an international airport with regular services to BuenosAires.
Over US$2m has already been invested by the owners onPocitos and Rio Grande in conducting significant investigations andassessments of the concessions.
The Pocitos concession coversan area of 98 km2. A drilling program carried out under the supervisionof the Richard Kleinwort Consultancy Group over two properties covering200 ha in 2007.
The Rio Grande Concession has a total area ofapproximately 170 km2. To date, the drilling program at Salar de RioGrande has been over an area of only 360 hectares over ten years agounder the supervision of Geological & Ceramic Services Pty Ltd. Itis proposed that a NI 43-101 be carried out on Rio Grande in the nextfew months.
A qualified person has not done sufficient work toclassify any of these resources as current mineral resources. However,a qualified person is currently reviewing past exploration and drillingresults for Sphere.
Pocitos and Rio Grande are located in theelevated and arid Puna region in the north western part of the countryclose to the Chilean border and form part of a number of highlymineralized Salars in production and development. Within the vicinityare: Salars Cauchari Olaroz, Pocitos, Arizaro and Incahuasi currentlyowned by Lithium Americas Corp. which has a Preliminary Prospectus andNI43-101; Salar de Olaroz currently being developed by OrocobreLimited; Salar de Rincon previously owned by Admiralty Resources NL andnow being developed by the Sentient Group a private equity investmentgroup specializing in resources; Salar de Hombre Muerto where FMCCorporation has a lithium producing plant; and adjacent and across theborder in Chile is Salar de Atacama, the largest Lithium producer inthe world.
The transaction involves the issue of common shares in Sphere over time based upon the following milestones:
a. a NI43-101 Report on the resources at Salar de Rio Grande ("Rio Grande")
within 120 days of the date of the Agreement. Rio Grande holds a minimum
in-situ resource of 1.4 million tonnes of sodium sulphate to be used in
the manufacture of sodium carbonate for the producers of lithium
carbonate in the Puna. Sphere will issue 10 million common shares upon
the release of the NI43-101 report confirming the minimum resource.
b. a feasibility study on the development of Salar de Pocitos ("Pocitos")
to be made available to Sphere within 120 days of the date of the
Agreement. Sphere will issue 3 million common shares to CHL 12 months
from the date of the agreement. CHL will use its best endeavours to
enable Sphere to make an offer to all other shareholders of the Company
holding the rights to the Pocitos concessions in Argentina after Pocitos
has been brought into production.
c. a feasibility study on the development and production of sodium
carbonate for the manufacture of lithium carbonate within 24 months from
the date of the Agreement. Sphere will issue 12 million common shares to
CHL in 24 months from the date of this Agreement.
Mr.Stevens is pleased to have Sphere's involvement in this opportunity andstated "I have been intimately involved with the advancement of theprolific Puna Region of Argentina for over 15 years. The acquisition ofCHL's holding in Salar de Pocitos and Salar de Rio Grande depositslocated in this rich area, which is widely recognized as the world'snext large scale, low cost Sodium Sulphate, Sodium Carbonate andLithium Carbonate brine resource; will provide Sphere with a timelyopportunity to enter the Industrial Minerals space, particularly nowthat there is a fundamental shift in the way the world is embracingelectric cars which will contribute to the upward demand pressure tosupply Lithium for batteries".
Mr. Stevens is a Director of CHLand has a beneficial interest in 13,335 CHL shares, representing 0.27%of the issued capital, held by his wholly owned company Central AssetManagement; and 86,364 CHL shares, representing 1.8% of the issuedcapital, held by CanAustra Investments Limited where he also holds theposition of Managing Director.
About Sphere Resources Inc.
SphereResources Inc. is focused on identifying and appropriating explorationtargets and other high quality assets in major global mining camps witha particular emphasis on precious metals. It is currently involved inexploring for gold mineralization in the Red Lake District of Ontario.
Theproposed transaction remains subject to, among other things, meetingcertain milestones, receipt of all requisite regulatory and otherapprovals, including stock exchange approvals.
On behalf of Sphere Resources Inc.
Malcolm L Stevens, Executive Chairman and President
Statementsin this press release other than purely historical information,including statements relating to the Company's future plans andobjectives or expected results, constitute forward-looking statements.Forward-looking statements are based on numerous assumptions and aresubject to all of the risks and uncertainties inherent in the Company'sbusiness, including risks inherent in mineral exploration anddevelopment. As a result, actual results may vary materially from thosedescribed in the forward-looking statements.
Neither the NEXBoard of the 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.
Contacts: Sphere Resources Inc. Malcolm L Stevens +34610616548 +61396023554 (FAX) mls@canaustra.com.au
SOURCE: Sphere Resources Inc.
mailto:mls@canaustra.com.au
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