Sparton Closes $1.785 Million Non-Brokered Private Placement Financing
December 21, 2009
TWO HOLES COMPLETED AT MARMION GOLD PROJECT
Sparton Resources Inc. (SRI:TSX-V) (the "Company") is pleased to announce that it has closed the non-brokered private placement originally announced on December 2, 2009. The Company has issued (i) 4,500,000 flow-through units (the "FT Units") at a price of $0.17 per FT Unit for aggregate gross proceeds of $765,000, and (ii) 6,000,000 non - flow through units (the "Units") at a price of $0.17 per Unit for gross proceeds of $1,020,000.
The FT Units are comprised of one common share of the Company and one-half of a share purchase warrant. The Units are comprised of one common share of the Company and one whole share purchase warrant. Each whole warrant is exercisable for one additional common share of the Company at a price of $0.20 per share until December 19, 2011. The Company paid cash commissions of $142,800 and issued 1,050,000 compensation options (the "Compensation Options") to PowerOne Capital Markets Limited as a finder's fee in relation to this financing. Each of the Compensation Options will be exercisable for one Unit of the Company at a price of $0.17 per unit until December 19, 2011.
The proceeds of the offerings will be used to fund the Company's ongoing exploration and development programs and for general corporate purposes.
MARMION GOLD PROJECT UPDATE
Two drill holes have now been completed on the West Hammond claim group, part of the Company's Marmion Gold Project near Atikokan, Ontario. These tested well defined induced polarization ("IP") targets located on the 3.5 km long shear zone trending through the West Hammond claims. Both holes intersected varying amounts of sulphide mineralization (pyrite) in both altered granite and volcanic rocks along this major structure. Both holes were drilled into IP anomalies under anomalous gold in soils and / or positive grab sample sites identified by the earlier prospecting program (see Sparton news release dated December 10, 2009).
Drilling will resume in early January 2010, after a break for the Christmas holiday season. At least 10 more holes are planned for the initial program.
Sparton's domestic and international exploration, development, and evaluation programs are being carried out under the direct supervision of A. Lee Barker, P. Eng., P Geol., the Company's President and CEO who is a Qualified Person under National Instrument 43-101.
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