Sparton Announces Final approval of Private Placement Offering for its Critical Metals Exploration Programs - Seite 2

A total of 500,000 Full Finder Warrants were issued for this Financing in connection with the issuance of the FTSUs. These may be exercised on or before 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.

The gross proceeds from the issuance of the FTS will be used to incur resource exploration expenses which will constitute “Canadian exploration expenses” as defined in subsection 66.1(6) of the Income Tax Act and "flow through mining expenditures" as defined in subsection 127(9) of the Income Tax Act (the “Qualifying Expenditures”), which will be renounced with an effective date no later than December 31^st, 2023, to the purchasers of the FTS Units in an aggregate amount not less than the gross proceeds raised from the issue of the FT Shares. If the Qualifying Expenditures are reduced by the Canada Revenue Agency, the Company will indemnify each subscriber of FTS Units for any additional taxes payable by such subscriber as a result of the Company’s failure to renounce the Qualifying Expenditures.

The closing of the Offering has now received all necessary regulatory approvals including those from the TSX Venture Exchange.

The FTS, NFTS shares and Warrant Shares, and any common shares of the Company that are issuable from exercising any warrants, will be subject to a hold period ending on the date that is four months plus one day following the issue date of December 29^th, 2023, in accordance with applicable securities laws.