Sparton Announces Closing of First Tranche of Private Placement Offering of C$500,000 for its Critical Metals Exploration Programs and Inclusion of Finders’ Warrants for the Placement
June 26 2024 - 4:30PM
Sparton Resources Inc. (
TSXV-SRI)
(“
Sparton” or the “
Company”) is
pleased to announce the closing on June 26, 2024, of the first
tranche of the non-brokered private placement (the
“
Offering”) announced on June 17, 2024, for gross
proceeds of C$320,000. This release constitutes an amendment to the
news release dated June 17, 2024, to include finders’ warrants. The
closing was in two tranches dated June 20, and June 26, 2024 (the
“Issue Dates”).
Sparton has issued 6,400,000 Quebec Flow-Through
Shares (“QFTS”) of the Company (each, a
“QFTS”) at a price of C$0.05 per
QFTS for proceeds of C$320,000. Each
QFTS will consist of one common share of the
Company. A total of 560,000 non-flow through finders’ warrants
(“FW”) will also be issued. Each FW will entitle the holder thereof
to purchase one common share of the Company at a price of C$0.05
for a period of 24 months following the Issue
Dates.
Each QFTS 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)
The Company intends to use the proceeds of the
offering for the exploration of the Company’s Critical Metals
projects in Quebec. This includes 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
where little work has been done for over 20 years. Work will
consist of a compilation of the recently completed airborne
electromagnetic survey data and the ground truthing of the
identified anomalies, followed by diamond core drilling.
The gross proceeds from the issuance of the
QFTS 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, 2025 to the purchasers of the QFTS in
an aggregate amount not less than the gross proceeds raised from
the issue of the QFT Shares. If the Qualifying
Expenditures are reduced by the Canada Revenue Agency, the Company
will indemnify each subscriber of QFTS 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.
Finders Fees in the sum of $28,000 cash and
560,000 finders’ warrants are being issued and have been paid to
third party finders.
The QFTS, and any common shares
of the Company that are issuable from exercising any finder’s
warrants will be subject to a hold period ending on the date that
is four months plus one day following the issue dates of June 20,
2024, and June 26, 2024, 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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