Sparton Announces Closing of Second Tranche of Private Placement Offering For its Critical Metals Exploration Programs

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TORONTO, Jan. 02, 2024 (GLOBE NEWSWIRE) -- Sparton Resources Inc. (TSXV-SRI) (“Sparton” or the “Company”) is pleased to announce the closing on December 29^th, 2023, of the second tranche of the non-brokered private placement (the “Offering”) announced on December 8^th, 2023, for gross proceeds of C$207,000.

This financing is fully closed effective December 31^st, 2023.

Sparton has issued 1,500,000 Flow-Through Share (“FTS”) Units of the Company (each, an “FTS Unit”) at a price of C$0.05 per FTS Unit for proceeds of C$75,000. Each FTS Unit consists of one common share of the Company and a ½ (one half) non-flow through Share Purchase Warrant (“SPW”) (1,500,000 one-half (1/2) or 750,000 full SPWs). Each FTS will consist of one common share of the Company to be issued as a Critical Metals “flow-through share” within the meaning of the Income Tax Act (Canada).

Each full SPW will entitle the holder thereof to purchase one common share of the Company (each, a “Warrant Share”) at a price of C$0.08 for a period of 24 months following the effective issue date, or December 29^th, 2025.

The Company has also issued 3,250,000 Non-Flow Through Share Units (“NFTSUs”) at a price of $0.04 for each NFTSU for proceeds of C$132,000. Each NFTSU consists of one Common Share of the Company and one-half (½) SPW.

Each full SPW will entitle the holder thereof to purchase one common share of the Company (each, a “Warrant Share”) at a price of C$0.06 for a period of 24 months following the effective issue date, or December 29^th, 2025.

The Company intends to use the proceeds of the offering for general corporate purposes and the exploration of the Company’s Critical Metals projects in Ontario and Quebec. These include the Pense -Montreuil polymetallic metals project east of Englehart, Ontario, and straddling the Ontario- Quebec border where historical work has identified zinc-copper-nickel mineralization with minor cobalt values, and little work has been done for over 20 years. The Oakes gold and related copper mineralization project near Matachewan, Ontario, has over 5 untested drill targets in close proximity to the former producing Ryan Lake copper and molybdenum mine, and the current Young Davidson gold producer. Work will consist of airborne electromagnetic surveys, follow up ground truthing of anomalies and diamond core drilling. The Oakes project has a number of untested Induced Polarization zones outlined by the Company that have never been tested and some of these are related to rock units similar to those hosting the nearby copper and molybdenum mineralization.