Vancouver-Sterling Group Ventures Inc. said Jan. 24 that it has arranged a private placement of up to 15,000,000 units at a price of $.10 per unit. The total proceeds from the private placement will be up to $1.5 million. The proceeds will be used to fulfill the immediate requirements of the 2010 agreement with Chenxi County Hongyu Mining Co. and relating to the development of the Gaoping phosphate mine located in Chenxi County, Hunan Province, together with other phosphate resources located in Hunan, and for working capital. Sterling signed agreements last year to acquire Hongyu, which holds permits allowing initial production up to 100,000 mt of phosphate ore per year. The property has an estimated 58.16 million mt of phosphate resources with a grade of 19.8 percent P2O5 based on a geological report by Hunan Chemical Geological Exploration Institute. Under the terms of the agreement, Sterling agreed to put the property into production and finance the building of a phosphate processing plant.
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