Sparton Resources Inc. Final Private Placement Closing and Updates

Executive Summary

• Sparton Resources completed the second and final tranche of its non‑brokered private placement, raising a total gross proceeds of C$410,000.
• The offering issued 5,285,715 NFTS units at C$0.035 per unit (C$185,000) and 500,000 non‑flow‑through share units at $0.03 per unit, together with associated warrants.
• Proceeds are earmarked for Canadian exploration expenses on the Pense polymetallic project in Ontario and for general corporate purposes; finders’ fees of $15,000 cash plus broker warrants were also paid.

Key Details

• Total Gross Proceeds: C$410,000 (combined from both tranches).
• NFTS Units Issued: 5,285,715 units at C$0.035 per unit → C$185,000 gross proceeds.
• Each NFTS Unit = 1 common share + ½ non‑flow‑through Share Purchase Warrant (SPW).
• Full SPWs issued: 2,642,858; each allows purchase of one common share at C$0.08 within 12 months.
• Non‑Flow‑Through Share Units (SU): 500,000 units at $0.03 per unit → $15,000 gross proceeds.
• Each SU = 1 common share + ½ warrant; full warrants allow purchase of one common share at $0.05 for up to 2 years.
• Finders’ Fees: $15,000 cash paid plus 428,571 full broker warrants (exercise price $0.05, exercisable within 24 months).
• Statutory Hold Period: All securities subject to a hold period ending April 13 2026 (four months + one day after issue).
• Use of Proceeds:
• NFTS proceeds → exclusively for Canadian exploration expenses qualifying as “flow‑through mining expenditures.”
• Additional funds → support exploration on the Pense polymetallic project (zinc, copper, nickel, minor cobalt) and general corporate purposes.
• Exploration Plans: Follow‑up prospecting, airborne surveys, target assessments, and diamond core drilling at the Pense project in Ontario.
• Corporate Update: Issuance of 4,200,000 incentive options to directors, officers, and consultants (exercise price $0.03, vest immediately, expire 12 Dec 2028).
• Regulatory Approvals: Offering received all required approvals from the TSX Venture Exchange.

Notable Quotes

(No direct quotes were provided in the release.)