Grass Roots Fertilizer Stocks

[Lone Clone]

Spur Ventures Updates Progress in China and in Implementing Its New Strategy
Mon Jul 20, 9:01 AM

http://ca.news.finance.yahoo.com/s/20072009/28/link-f-ccnmatthews-spur-ventures-updates-progress-china-implementing-its-new.html

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 20, 2009) - All amounts are expressed in US dollars, unless otherwise stated

Spur Ventures Inc. ("Spur" or the "Company") (TSX: SVU.TO)(OTCBB: SPVEF.OB) today gave an update on its progress in China and the implementation of its New Strategy announced in its October 30, 2008 Press Release.

"In recent months Spur has been encouraged by the spirit of cooperation exhibited by both our Chinese Joint Venture Partner, Hubei Yichang Phosphate Chemical Co. Ltd. (YPCC) and the Chinese authorities," Dr. Rob Rennie, Spur's President and CEO, stated. YPCC has offered to increase its equity holding in Yichang Maple Leaf Chemicals (YMC) through the increased value of the two phosphate mines and by funding the completion of the Mono ammonium Phosphate (MAP) Project which was idled in the 3Q2008.

KEY DEVELOPMENTS

YMC Integrated Phosphate Project

YPCC and Spur Form Task Force to Advance the Mining License Transfers

Although YPCC is responsible for the formal transfer of the two mining licenses to YMC there are many tasks requiring both JV partners to work together for the ultimate success of YMC. YPCC has invited Spur to form a joint Task Force to work together to accomplish these various tasks.

The transfer of the Skukongping and Dianziping mining licenses involves at least seven key sub processes which must be advanced in parallel. It is a complex and time consuming process which requires approval by various government departments (noted in parentheses) at the Yichang City, Hubei Province and sometimes Central Beijing government level of:

1. Updated reserves report and mining plan (Land and Resources)

2. Updated value of the mines (State Owned Administration and Supervisory Commission (SASAC) and Land and Resources)

3. Updated capital cost and implementation plan of the Project (Commerce Bureau and Ministry of Commerce)

4. Extension of the 5 year term of the mining license for the Skukongping mines which expires on October 9, 2009 (Land and Resources)

5. Annual review of the Project progress and renewal of YMC's Business License on or before November 24, 2009 (Commerce Bureau and Hubei Administration for Industry and Commerce (AIC))

6. Modified Joint Venture agreement with increased equity ownership for YPCC reflecting the current higher value of the phosphate mines and cash contributions to MAP Project (Commerce Bureau, AIC and MofCom)

7. Transfer of the two mining licenses from YPCC to YMC (SASAC and Land and Resources)

"Both Spur and YPCC recognize the challenges and time involved to complete these tasks for the transfer of the mining licenses but are more encouraged than at any time in recent years that we are making real progress," Rennie stated.

Loan Repayment from Chinese Joint Venture Partner (YPCC)

YPCC has repaid the fourth yens 400,000 ($58,530) installment leaving yens 324,563 ($47,730) to be paid in August for completion of all amounts due.

Diversifying Spur

Spur has engaged the services of a consultant with extensive experience in business development and investment banking to assist in analyzing new opportunities for Spur in the natural resource sector. A number of potential opportunities in both the fertilizer and precious metal sectors have been reviewed but management has concluded that none of these opportunities have so far merited investment.

Spur Continues to Control Its Costs and Remains in a Strong Working Capital Position

As Spur concentrates on the transfer of the mining licenses and looks for other opportunities the Company has significantly reduced its operational costs and is operating with only a core team in China and Canada. Year over year, total expenses are 35% lower due to reductions of 50% in travel, 54% in professional fees, 67% in transfer agent and filing fees and 20% in consulting fees. Salary, wage and benefits are down only 19% due to one time severance payments to 100 of the two joint ventures' 120 employees in China.

As of June 30, 2009, the Company maintained a balance of cash and cash equivalents and short-term investments of $CDN 24.1 million equivalent to $CDN 0.40 per share. Spur is currently trading at 50% of that value.

This news release includes certain statements that may be deemed to be "forward-looking statements" regarding the timing and content of upcoming programs. Although Spur Ventures believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include phosphate and potash prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contacts

Dr. Robert Rennie
Spur Ventures Inc.
[e-mail]

Mr. Michael Kuta
Spur Ventures Inc.
604-697-6201
[e-mail]
www.spur-ventures.com