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Sparton Resources (TSXV:SRI) has announced a non-brokered private placement

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The company is looking to raise gross proceeds of up to $500,000 from a combination of non-flow through units, flow through units and Quebec flow through units. The non-flow through units are priced at $0.05 per unit with the flow through units priced at $0.06 per unit. The units consist of 1 share and one-half a warrant, with each full warrant exercisable at $0.10 for 12 months.

Additional Information:

Company: Sparton Resources
Website: http://www.spartonres.ca
Stock Symbol: TSXV; SRI
Date Published: Jul 13, 2020
Transcript: Available

Video Transcript:

I’m Megan Edwards for Investmentpitch Media

Sparton Resources has announced a non-brokered private placement.

The company is looking to raise gross proceeds of up to $500,000 from a combination of non-flow through units, flow through units and Quebec flow through units.

The non-flow through units are priced at $0.05 per unit with the flow through units priced at $0.06 per unit.

The units consist of 1 share and one-half a warrant, with each full warrant exercisable at $0.10 for 12 months.

The Quebec flow through units are priced at $0.065 per unit and consist on one share and one-half a warrant, with each full warrant exercisable at $0.12 for 12 months.

The shares are currently trading at $0.05.

Proceeds will be used for corporate and exploration expenditures on the company’s Canadian Exploration Programs.

The company recently acquired 18 additional claims adjacent to or nearby the company’s Sir Harry Oakes Mining Leases in the Matachewan gold mining area in northern Ontario, increasing the project to 736 hectares.

A. Lee Barker, President & CEO, stated: “Sparton now has a significant land package and a historically notable property in an active mining camp. By acquiring these new claims, we have filled-in the claim block, and increased our property holdings to make regional exploration easier. The work program will be expanded to cover both the Oakes Leases and adjacent property. Exploration permit applications are well advanced. We plan a detailed exploration program on the Leases and nearby Claims as soon as possible, hoping to duplicate the success Sir Harry Oakes had at the Lakeshore Mine in Kirkland Lake.”

In December 2019 Sparton granted an option to Eldorado Gold Corporation to earn up to an initial 75% interest in its Bruell Project, located east of Val D’or, Quebec.

Under the Option Agreement Eldorado will make all future cash payments and fund all the future expenditures required under the existing Property Option Agreement.

If Eldorado makes all future cash payments and funds all the future expenditures required then it has the right to have Sparton participate in a new joint-venture in which Sparton will hold a 25%, or buy-out Sparton’s 25% interest for $1.8 million adjusted for the Consumer Price Index at the time Eldorado makes the election, in which case Sparton will be granted a 2% NSR, and 50% of the NSR can be purchased by Eldorado for $2.5 million at any time.

For more information, please visit the company’s website at www.spartonres.ca, contact A Lee Barker, President & CEO, at 647-344-7734 or mobile at 416-716-5762 or by email at info@spartonres.ca.

I’m Megan Edwards for Investmentpitch Media