Sparton Announces Revision to Closing of Second Tranche of Private Placement Offering For its Critical Metals Exploration Programs
05 Januar 2024 - 11:30PM
Sparton Resources Inc. (
TSXV-SRI)
(“
Sparton” or the “
Company”) is
pleased to announce the closing on December 29th, 2023, of the
second tranche of the non-brokered private placement (the
“
Offering”) announced on December 8th, 2023, for
gross proceeds of C$205,000, (formerly reported as $207,000).
This financing is fully closed effective
December 31st, 2023.
Sparton has issued 1,500,000 Flow-Through Share
(“FTS”) Units of the Company (each, a 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 29th,
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,
(formerly reported as $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 29th,
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 31st, 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 received all
necessary regulatory approvals including the TSX Venture
Exchange.
No finder’s fees have been paid for these
placements.
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 29th, 2023, 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 & CEOTel./Fax:
647-344-7734 or Mobile: 416-716-5762Email:
info@spartonres.caWebsite: 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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