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Sparton Resources Announces Private Placement Offering of up to C$500,000 For its Critical Metals and Gold Exploration Programs
TORONTO, June 17, 2024 (GLOBE NEWSWIRE) -- Sparton Resources Inc. (TSXV-SRI) (“Sparton” or the “Company”) is pleased to announce non-brokered private placements
About this update from Sparton Resources Inc.
[{"type":"text","content":" TORONTO, June 17, 2024 (GLOBE NEWSWIRE) -- 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 Ventu...