Sparton Completes Sale of 25% Stake in Bruell Gold Project to Eldorado
Deal News | May 30, 2025 | Globenewswire
Sparton Resources Inc. has announced the completion of a sale agreement with Eldorado Gold Corporation. Effective May 29, 2025, Eldorado has acquired Sparton's remaining 25% interest in the Bruell Gold Project, located in Vauquelin township, Quebec, for $275,000 CAD and a 2% Net Smelter Return Royalty. The original 2019 agreement between the parties provided Eldorado the option to purchase the same stake for $1.8 million plus an NSR. The decision to sell was influenced by Sparton's need for immediate cash flow due to the current state of the junior exploration sector and the company's share price, allowing it to focus on its other properties and corporate goals.
Sectors
- Mining
- Financial Services
Geography
- Canada – The transaction and subject matter relate to a mining project located in Quebec, Canada, involving Canadian companies.
Industry
- Mining – The article involves the sale of a stake in a gold mining project, directly impacting the mining sector.
- Financial Services – The transaction involves financial negotiations and implications, including royalties and valuation adjustments, pertinent to financial services.
Financials
- $275,000 CAD – Purchase price of Sparton's 25% interest in the Bruell Gold Project.
- 2% Net Smelter Return Royalty – Ongoing royalty payment agreed upon as part of the transaction.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Sparton Resources Inc. | Target Company/Seller | Company | A Canadian exploration company focused on gold and other precious minerals. |
| Eldorado Gold Corporation | Buyer | Company | A multinational gold mining company acquiring full ownership of the Bruell Gold Project. |