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Sparton to produce germanium exclusively from Voltaix GeO2

Sparton says it has the capacity to be the 7th largest primary producer of

 Voltaix has executed a Memorandum of Understanding (the “MOU”) with Canadian based Sparton Energy for the purchase of all germanium production from the Huajun Mine in Yunnan Province, China.

 The MOU contemplates an investment by Voltaix of approximately $US4.2 million dollars in a series of advances related to milestones in the development of the Huajun operations.

“We are pleased to have reached this important strategic relationship with Sparton,” said Mark Wilkinson, Executive Vice President of Voltaix. “As the world’s leading germane producer, securing our germanium supply is critical. This relationship allows us to continue to provide our customers with the highest levels of supply chain security by giving Voltaix an exclusive source of significant germanium reserves. This also represents a win for the local workers at Huajun, who will be re-employed once the mining license is granted.”

Sparton President, Lee Barker, stated, “Sparton is delighted to establish this unique long term relationship with Voltaix and become a supplier of one of the primary components necessary for its leading edge technology products. Local germanium concentrate prices at Lincang have almost doubled within the past year, and we look forward to resuming production of this specialty metal.”

The MOU contemplates deliveries of germanium dioxide (GeO2) by Huajun to Voltaix over the life of the Strategic Supply Agreement (the “SSA”). The advances are to be recouped through deliveries of GeO2 pursuant to the SSA. The price for this product is based on a blended formula related to actual processing and refining costs and local market pricing for GeO2. The advances are to be used for several purposes, including additional safety upgrades and efficiency improvements that will increase production rates.

The Huajun Mine is in the final stages of having a new mining licence issued. At full capacity, the mine employs approximately 400 people. The mine has completed all necessary safety and security upgrades to meet new Chinese regulatory requirements and reactivation of the operations will begin immediately after the new mining licence is received. The mine has a 7 year history of no major lost time accidents.

Voltaix materials enable logic chips to compute more quickly and solar cells to absorb a broader portion of the solar spectrum, and they improve manufacturability by minimising defect formation and increasing machine throughput.

Voltaix manufactures specialty materials that enhance the performance and manufacturability of semiconductors and photovoltaics. Utilising its expertise in silicon, germanium and boron chemistry, its products are custom designed for the most demanding applications, including SiGe transistors for wireless communications chips.

Voltaix manufactures of a number of electronics products, including germane, diborane, trisilane, and trimethyl boron. The firm uses proprietary synthesis, purification, and packaging technology developed in-house. It also designs and builds its own equipment for use in its manufacturing operations.

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