Sparrowtech Resources (SPMC)

[alexindef]

http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=6478393
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Three month period ended June 30, 2009

In June 2009, the Company received $36,000 stock subscription for 360,000 common shares at $0.10 per share, as part of its efforts to raise funds through private placement of shares.. The Company also issued 500,000 restricted common shares to Sparrowtech Resources, Inc, (“Optionor”) for a right to earn a 49% interest in the mineral claims situated in, La Paz, Arizona, USA, generally known and described as the ”Eagle Nest Mining Property” (“Eagle Nest”) The Company expensed this cost of $20,000 to project expense."

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8. Commitments and Contingencies-Cont’d


c) Effective April 21, 2009, the Company signed a Letter of Intent/Option Agreement with SparrowtechResources, Inc, (“Optionor”) for a right to earn a 49% interest in the mineral claims situated in, La Paz, Arizona, USA, generally known and described as the ”Eagle Nest Mining Property” (“Eagle Nest”). The initial option period will be for a maximum of one year from the effective date. The Optionor granted to the Company the right and option to acquire a 49% interest in the Eagle Nest property by making the following payments to the Optionor plus the cost of expenditures for mining work (“Expenditures”) and issuing shares of its capital as follows:

1 . Deposit due on signing of LOI and paid $ 10,000
Due and payable to the Optionor by May 31, 2009 and paid $ 35,000
Work program commitment expenditures to be incurred on exploration:
Within three months-Before August 21, 2009* $ 60,000
Within nine months-Before January 21, 2010 $ 90,000
Total within one year- Before April 21, 2010 $ 150,000
*The Company obtained an extension from July 21, 2009 to August 21, 2009



2. The Company will issue two (2) million restricted common shares of the Company’s common stock to the Optionor by May 15, 2009. This was revised to issuance of a total of 500,000 restricted common shares which were issued in June 2009.

3. On subsequent anniversary dates, the Company will pay $15,000 to the Optionor:



April 21, 2010 $ 15,000
April 21, 2011 $ 15,000
April 21, 2012 $ 15,000

Any expenditure incurred in excess for such period shall be credited towards the expenditures required for the succeeding period or periods. The initial option may be terminated by the Company at their sole discretion any time after the exploration payments for the initial minimum of nine months of assessment work and taxes are paid. If the Company elects to terminate the Initial Option, the Company will not have acquired any interest in the Property. During the initial option period, the Optionor will be the operator manager of the exploration programs and will be entitled to a 15% administration fee on exploration expenditures. All costs related to keeping the property in good standing including property taxes and costs to maintain the concessions in good standing will be considered allowed exploration expenditures.