TORONTO, ONTARIO  July 13, 2020. Sparton Resources Inc. (TSXV.SRI) (“Sparton” or the “Company“) announced today that it intends to enter into agreements for a private placement financing totalling up to $500,000 through the sale of up to a total of  8,333,333, Non-Flow Through Share Units, Flow Through Share Units and Quebec Flow Through Share Units, ( “NFTSUs”, “FTSUs” and “QFTSUs”  respectively), in aggregate,  to accredited investors. 

Each NFTSU is priced at $0.05 and each FTSU is priced at $0.06. QFTSUs are priced at $0.065 each. The Units consist of one common share of the Company and one-half common share purchase warrant. 

Two one-half common share purchase warrants and the sum of $0.10 paid to the Company will entitle FTSU and NFTSU warrant holders to purchase one additional common share for one year after Closing. 

For QFTSU warrant holders two one-half common share purchase warrants and the sum of $0.12 paid to the Company will entitle them to purchase one additional common share for one year from the Closing Date. 

The Closing Date of the financing is expected on or before July 29, 2020.

Proceeds will be used for corporate and exploration expenditures on the Company’s Canadian Exploration Programs. These include 2000 meters of planned drilling activities on the Oakes Project in the Matachewan Gold Area of Ontario and monitoring activities on the Bruell Gold Project being operated by Eldorado Gold Corporation east of Val D’Or, Quebec.

Click on map to enlarge Updated Oakes Project Claims Map  (Additional Claims outlined in Press Release of July 6, 2020)

Resale of the shares is subject to normal restrictions under TSX Venture Exchange Policy and the transaction is subject to final regulatory approval.