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TORONTO, July 18, 2024 (GLOBE NEWSWIRE) -- Sparton Resources Inc. (TSXV-SRI) (“Sparton” or the “Company”) is pleased to announce the final closing on July 17th, 2024, of the non-brokered private placement (the “Offering”) announced on June 17th, 2024, for gross proceeds of C$320,000. The Offering was closed in two tranches, one of $200,000, and one of $120,000.
The Company intends to use the proceeds of the offering for the exploration on the Quebec side of the Company’s Pense-Montreuil Project which straddles the Ontario-Quebec border. Historical work has identified zinc-copper-nickel mineralization with minor cobalt values. Airborne electromagnetic and magnetic surveys (“EM” and “MAG”) and follow-up ground truthing by the Company have identified over 5 untested, short strike length, EM and coincident magnetic anomalies on the Quebec portion of the project with geophysical signatures indicating possible massive sulphide bodies as the anomaly sources.
Company President A. Lee Barker, stated:” The Company now has sufficient funds to carry out the initial drilling of several of the targets identified by the airborne and ground surveys. The drilling, scheduled to begin in late August, is subject to successful permitting applications currently underway, and will be carried out using the Sparton’s wholly owned subsidiary drilling company and its highly regarded and efficient drill team”.
Sparton has issued a total of 6,400,000 Quebec Flow-Through Shares (“FTS”) of the Company at a price of C$0.05 per FTS. Each FTS Unit consists of one common share of the Company and has been issued as a Quebec Critical Metals “flow-through share” within the meaning of the Income Tax Act (Canada) as further explained below:
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, 2024, 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.