Spur Ventures and Hubei Yichang Phosphorous Chemical Sign Revised Joint Venture Agreement

Vancouver-based Spur Ventures Inc. announced that it has signed a revised joint venture agreement, creating the conditions required for the transfer of the mining licences from its partner, Hubei Yichang Phosphorous Chemical Co. (YPCC) to Spur’s Chinese joint venture, Yichang Maple Leaf Chemicals (YMC). YPCC is a state-owned enterprise of Yichang City, Hubei province and Spur is a plant nutrient manufacturer and marketer. Revisions to the original joint venture agreement include: a reduction in the capital cost of the project from approximately $478 million to $382 million and a lower new registered capital amount of $117 million instead of the $168 million. Also, YPCC has the right to earn a 51% equity ownership in YMC by transferring the Dianziping and Shukongping mines to YMC at their current value of $52 million and by contributing approximately $2.5 million in cash. Spur has the right to earn a 49% equity ownership in YMC by contributing an additional $34.1 million.