Sterling Group Ventures, Inc. ("Sterling") is a natural resource company
headquartered in Vancouver, Canada. Sterling signed two agreements (the "Agreements") with Chenxi County Hongyu Mining Co. Ltd. ("Hongyu") and its shareholders ("Hongyu
Shareholders") regarding the Gaoping phosphate mine (the "GP Property') located in Tanjiaxiang, Chenxi County, Hunan Province, China and other phosphate resources in Hunan Province. There
are about 75.7 million shares outstanding which are quoted on the Quality Board (QB) of the electronic system of OTCMarkets (OTCQB) under the symbol SGGV.
Hongyu is a Chinese private mining company with connections and resources in Hunan, China.
Hongyu is interested in exploring, developing and expanding its phosphate business. Hongyu is the
holder of a mining permit (the "Permit") covering phosphorite property 38 kilometers east of Chenxi
County in the Tanjiachang Phosphorite area, Chenxi County, Hunan Province, China. The mining permit is 0.425 square kilometers above an elevation of 510 meters. The phosphate is a
sedimentary deposit and occurs at the Jinjiadong Formation of Upper Sinian. The mining permit allows initial production up to 100,000 tonnes of phosphate ore per year. The Inferred Resource is
2,190,000 tonnes of 22.58% P2O5 within the mining permit.
Sterling through its wholly subsidiary – Silver Castle Investments Ltd also signed a Letter of Intent
with Chenxi County Merchants Bureau for a larger exploration area known as the Tanjiachang Village Phosphate Deposit.
On May 16, 2011, Chinese government approved the acquisition of Hongyu by Sterling's wholly subsidiary – Silver Castle Investments Ltd.
The new business license has been issued on June 15, 2011. The final payment to shareholders of Hongyu for the acquisition was made on July 8, 2011.
has commenced production operations on its Gaoping Phosphate Project located in Chenxi County, Hunan Province, China.