Sparton Announces Private Placement Offering of up to C$500,000 For its Critical Metals and Gold Exploration Programs
17 June 2024 - 9:30PM
Sparton Resources Inc. (
TSXV-SRI)
(“
Sparton” or the “
Company”) is
pleased to announce non-brokered private placements (the
“
Offering”) for gross proceeds of up to C$500,000.
Up to 10,000,000 Flow-Through Shares
(“FTS”) of the Company (each, a
“FTS”) will be offered at a price of C$0.05 per
FTS for proceeds of up to C$500,000. Each
FTS will consist of one common share of the
Company.
The Company intends to use the proceeds of the
offering for the exploration of the Company’s Critical Metals and
Gold projects in Ontario and Quebec. Work will be carried out
specifically, on the Pense -Montreuil polymetallic Project, and on
the Oakes Project for gold and related copper mineralization.
The Pense-Montreuil Project is located east of
Englehart Ontario straddling the Ontario- Quebec border, where
historical work has identified zinc-copper-nickel mineralization
with minor cobalt values. The Oakes Project has 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 follow-up ground truthing
of airborne 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 2024, "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, 2024 to the purchasers of the FT 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 for any additional taxes payable by such
subscriber as a result of the Company’s failure to renounce the
Qualifying Expenditures.
The Offering may close in several tranches and
is subject to receipt of all necessary regulatory approvals
including the TSX Venture Exchange. Finder’s fees or commissions
will be payable in accordance with the market and policies of the
TSX Venture Exchange. The FTS will be subject to a
hold period on resale ending on the date that is four months plus
one day following the FTS issue date in accordance
with applicable securities laws.
The securities offered have not been, and will
not be, registered under the United States Securities Act of 1933,
as amended (the "U.S. Securities Act") or any U.S.
state securities laws, and may not be offered or sold in the United
States or to, or for the account or benefit of, United States
persons absent registration or an applicable exemption from the
registration requirements of the U.S. Securities Act and applicable
U.S. state securities laws. This press release does not constitute
an offer to sell or the solicitation of an offer to buy securities
in the United States, nor in any other jurisdiction.
For more information, contact:
A. Lee Barker, M.A.Sc., P.Eng.President &
CEO Tel./Fax: 647-344-7734 or Mobile: 416-716-5762Email:
info@spartonres.ca Website: www.spartonres.ca
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Forward-Looking Statements
Information set forth in this news release
involves forward-looking statements under applicable securities
laws. The forward-looking statements contained herein include, but
are not limited to, financings and transactions being pursued, and
all such forward-looking statements are expressly qualified in
their entirety by this cautionary statement. The forward-looking
statements included in this news release are made as of the date
hereof and the Company disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
expressly required by applicable securities legislation. Although
the Company believes that the expectations represented in such
forward-looking statements are reasonable, there can be no
assurance that such expectations will prove to be correct and,
accordingly, undue reliance should not be put on such
forward-looking statements. This news release does not constitute
an offer to sell or solicitation of an offer to buy any of the
securities described herein.We Seek Safe Harbour
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