Sparton Resources has received the second payment of Can$1.67 million from Starry Limited for the purchase of a 41% interest in Yunnan Sparton Minerals Company (YSM).

Sparton will retain 39% of shares in YSM, which is the owner of the Luxi Gold Project exploration licences and project assets in Yunnan Province, China.

In the same agreement Sparton's partner in YSM, Yunnan Nuclear Exploration Team 201, has also received a second payment of Can$407,591 for the sale of 10% of its YSM shares to Starry.

Sparton president and CEO A Lee Barker says: "We are very pleased to have successfully advanced this agreement with Starry.

"Starry is fully supported by one of China's largest integrated gold producers and ongoing exploration at Luxi, including further evaluation of the various new targets in the area, will be organized and executed by a joint working committee with representatives of all the Luxi stakeholders.

"Once again we have shown our ability to operate successfully in China having repatriated more than 60% of our investment in Luxi to the company treasury, while retaining a 39% equity interest and a strong technical participation in the project."