Sparton Resources Inc. (the "Company") is pleased to announce that, through funding provided by its majority controlled subsidiary, VanSpar Mining Inc. ("VanSpar"), the preparatory work program required to begin the commissioning of one of the world's largest vanadium flow batteries has been substantially completed.
The battery is located in Hebei Province, China, at the Zhangbei SGCC1 Project, approximately 60 km north of Beijing, in proximity to the site of the Beijing 2022 Winter Olympics. The battery unit has a power capacity of 8 megawatt hours.
Please see Sparton News Release, dated September 10, 2015.
A team of experienced technicians, led by engineers who previously built and installed the battery, have substantially completed the pre-commissioning program on time and under budget. The battery owner, the State Grid North China Company Limited ("State Grid') has been notified and approval requested to start the commissioning program. This includes, among other things, a full power test and, thereafter, 240 hours of continuous battery operation.
Once commissioning of the battery is successfully completed and the battery is accepted by State Grid, it is obligated to make a series of payments to the company that is undertaking the work funded by VanSpar. Following the initial payment due on acceptance, additional annual maintenance fees are payable over the next 3 years.
The previously announced convertible debenture financing undertaken by VanSpar (up to US $650,000) has provided sufficient funding to date (approximately CAD$153,000) to carry out the SGCC1 Project pre-commissioning work. That financing is continuing and VanSpar anticipates additional tranches to be completed from time to time, although it is not expected that the maximum amount of the financing will be required.
Additional information will be reported when available.
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