SVU.V.....News Release cash is king.
Spur Ventures closes Spur BVI sale to Hong Tang
2012-02-14 09:22 PT - News Release
Dr. Robert Rennie reports
SPUR VENTURES ANNOUNCES THE CLOSING OF THE SALE OF SPUR BVI FOR $9.25 MILLION
Spur Ventures Inc. has closed the sale of its wholly owned subsidiary, Spur Chemicals (BVI) Inc. to Hong Tang Vision Ltd., a limited liability company registered in the Cayman Islands, for cash consideration of $9.25-million.
The closing officially brings to an end all of the Company's operations in China because it is through Spur BVI that the Company indirectly owned its interest in two Chinese joint ventures, Yichang Maple Leaf Chemicals ("YMC") and Yichang Spur Chemicals ("YSC").
With the $9.25 million proceeds from the sale of Spur BVI, the Company will have approximately $31 million (or
.51 per share) in cash or cash equivalents, all held in Canadian financial institutions with which to pursue its previously announced strategy to pursue advanced development or operating mineral assets in lower risk jurisdictions.
In addition, the share purchase agreement in respect of the sale of Spur BVI also provides that, if at any time in the future the relevant Chinese authorities remove YMC's current obligation to produce phosphate fertilizers thus licensing YMC to simply be a phosphate mining company, Spur will receive an additional payment of $4.75 million from Hong Tang (for total cash proceeds to the Company of $14 million). The Company will continue to monitor YMC's status going forward.
TSX Listing
Since the announcement of the sale of Spur BVI, the Company has been reviewing the status of its listing on the Toronto Stock Exchange ("TSX") given that the Company has now sold substantially all of its current mineral assets.
While the Company is in the process of reviewing and evaluating a number of opportunities to acquire eligible mining interests, the Board has concluded that a listing with the TSX Venture Exchange ("TSX-V") would best suit the needs of the Company while providing continued and seamless trading liquidity for the Company's shareholders. As such, the Company has submitted a listing application to the TSX-V, which is now under review, and has notified the TSX of its intention to voluntarily de-list in order to progress a TSX-V listing.
The Company expects approval of its listing on the TSX-V prior to the de-listing from the TSX to becoming effective. The Company's common shares will continue to trade in the United States on the over the counter market under the symbol "SPVEF."
A further announcement will be made in due course.
We seek Safe Harbor.