Sparton Announces Final approval of Private Placement Offering for its Critical Metals Exploration Programs

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TORONTO, Jan. 30, 2024 (GLOBE NEWSWIRE) -- Sparton Resources Inc. (TSXV-SRI) (“Sparton” or the “Company”) is pleased to announce it has received final approval from the TMX Venture Exchange (the “Exchange”) of the non-brokered private placement (the “Offering”) announced on December 8^th, 2023.

This financing was fully closed effective December 31^st, 2023, with conditional approval from the Exchange.

Sparton has issued a total of 11,500,000 Flow-Through Share (“FTS”) Units of the Company (each, a FTS Unit”) at a price of C$0.05 per FTS Unit. Each FTS Unit consists of one common share of the Company and a ½ (one half) non-flow through Share Purchase Warrant (“SPW”) for a total of 5,500,000 Full SPWs. These include the Finder Warrants mentioned below.

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 issued with the FTS Units 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$130,000. Each NTFSU consists of one Common Share of the Company and ½ (one half) SPW for a total of 1,625,000 Full SPWs.

Each full SPW issued with the NFTSUs 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.

For the Second Closing announced on January 2^nd, 2024, a total of 1,000,000 FTSUs were issued to an Insider of the Company, which participation constitutes a "related party transaction" for the purposes of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying upon exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 in completing the Offering with the Insider on the basis that the fair market value of such participation is less than 25% of Sparton's current market capitalization.