Sterling Group Ventures, Inc. (OTCBB:SGGV)(FRANKFURT:GD7) has reported that it has signed a letter of intent dated November 10, 2010 with Shimen Merchants Bureau to put into production the Shujiatai phosphate property located in Shimen County, Hunan Province, China.
The Property, a sedimentary phosphate type deposit, hosts 36 million tonnes of ore with a grade of approximately 17.5% P2O5 based on a Chinese feasibility study report conducted by the Design and Research Institute of Hubei Jingxiang Phosphate Chemicals Industry Co. Ltd. The property has the necessary infrastructure and the ore body is near surface.
Under the terms of the LOI, Sterling will conduct due diligence on the Property within one and half years and update any Chinese study reports if necessary to build a mining, processing and chemical plant. After the due diligence is completed, Sterling will set up a joint venture for developing the deposit.
As a result of this transaction, Sterling will have access to approximately 94 million tonnes of phosphate ore of which 58 million tonnes of phosphate ore is from the acquisition of Hongyu Mining which was announced on October 21, 2010.
Source: Sterling Group Ventures, Inc.