08:10 AM EDT, 04/22/2024 (MT Newswires) -- Sparton Resources Inc. ( SPNRF ) announced Monday that Eldorado Gold Corporation ( EGO ) has, effective April 18, 2024, exercised its option to acquire from Sparton an initial 75% interest in the Bruell gold project, east of Val D'Or, Quebec.

According to a statement, Sparton and Eldorado executed a further amendment to the original option agreement to delete the 20 business day further option period and replace it with 75 business day option period for Eldorado to implement the joint venture or decide if it wishes to acquire all of the remaining Sparton 25% interest for a combination of a $1.8 million cash payment (adjusted for CPI) and a residual 2% net smelter return royalty. The statement said 50% of the NSR can be purchased by Eldorado for $2.5 million at any time. This extension will enable transferring of the Bruell claim titles to Eldorado, preparation of joint venture documents and the efficient implementation of other things necessary for the property ownership change, the statement added.

"Sparton is delighted that Eldorado has decided to exercise its option and we look forward to working with them," said A. Lee Barker, Sparton's CEO. "With gold prices at all time highs and positive technical results from Eldorado's work to date, we welcome the possible opportunity to participate in further programs".