TORONTO, March 28, 2007 (PRIME NEWSWIRE) -- Sparrowtech Resources, Inc. ("Sparrowtech") (Pink Sheets:SPMC) announced today that it has signed a Letter of Intent with Overseas Mining, S.A. ("Overseas"), a Panama Corporation, to acquire 80% of the mineral rights, mining interests, claims, equipment and other assets of Minera El Porvenir, S.A. ("Porvenir") in Southern Ecuador, subject to the completion of our due diligence process.
Sparrowtech President, Cornelia Volino recently traveled to Ecuador to visit the Porvenir mining operation and commenced negotiations with Overseas. "Sparrowtech is excited about the proposed acquisition of its first producing mine in Ecuador," stated President Cornelia Volino. She further stated, "We look forward to the opportunity of working together with Overseas Mining S.A. and their mining experts and geologists to manage the current operations and identify strategies to increase its gold production."
Located approximately 2 hours from Guayaquil, Ecuador with primarily paved roads, the Porvenir mining property is accessible to water and electricity. Porvenir is situated in an area containing past and current gold producers including International Minerals Corp, which includes its Gaby Project, a porphyry gold copper deposit and is located in the western end of the Ecuadorian metallurgical gold belt with historical production of gold and other metals.
A number of statements contained in this press release may be considered to be forward-looking statements. These forward-looking statements involve a number of risks and uncertainties including but not limited to: competitive market conditions, successful integration of acquisitions, and the ability to secure sources of financing. The actual results that Sparrowtech may achieve could differ materially from any forward-looking statements due to such risks and uncertainties.