Sparton Resources Inc.: Private Placement Financing Completed, New Options Granted, Mr. Tom Obradovich Joins Advisory Board

About this update from Sparton Resources Inc.

[{"type":"text","content":" TORONTO, Aug. 04, 2020 (GLOBE NEWSWIRE) -- Sparton Resources Inc. (TSXV.SRI) (\"Sparton\" or the \"Company\") announced today that it has completed, effective July 29, 2020, a $533,250 private placement financing through the sale of  3,620,000 Non-Flow Through Share Units (“NFTSUs”) and 5,870,333 Flow-Through Share Units (“FTSUs”) to a number of individual accredited investors ( the “Investors”).  A total of 9,490,333 units (the “Units”) are to be issued. No Quebec Flow Through Share Units were sold as Eldorado Gold Corp. is carrying all the costs for the Bruell Project.  Please see Sparton news release dated July 13, 2020.  The placement was oversubscribed. Each of the NFTSUs and FTSUs consists of one common share of the Company and a one-half Share Purchase Warrant (“SPW”).  Two SPWs will entitle the warrant holder to purchase one additional Sparton common share at a price of $0.10 for one year from the date of approval of the financing by the Toronto Venture Exchange. Each NFTSU was priced at $0.05, and each FTSU was priced at $0.06. The placement is non-brokered and commissions and finder’s fees of 6% cash and 6% in SPWs are payable on a portion of the value of the total financing introduced by the finders.  The finders SPW terms are the same as for the SPWs provided as part of the Units to the Investors. Proceeds of the financing will be used for expenditures on the Company’s Canadian Exploration Programs, including 2,000 metres of drilling and other exploration activities on the Oakes Gold Project in the Matachewan Gold Area of Ontario. Resale of the shares is subject to normal restrictions under TSX Venture Exchange Policy and the transaction is subject to final regulatory approval. New Options Granted The Company’s Board of Directors has, effective August 3, 2020, approved the granting of stock options to its directors, consultants and advisors, to acquire 2,700,000 shares in aggregate, at an exercise price of $0.05 and valid for a period of 3 years from August 3, 2020.  At the time of this grant, there were no options outstanding. Mr. Tom Obradovich Joins Sparton’s Advisory Board. Sparton is pleased to welcome Tom Obradovich to its Advisory Board.  Mr. Obradovich is a seasoned mining professional with over 35 years of domestic and international experience in the successful explor...

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