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
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TORONTO, June 26, 2024 (GLOBE NEWSWIRE) -- 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.