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Sparton
Resources Inc. (TSX VENTURE:SRI) (the "Company") announced
today that a 1500 meter reverse circulation drill program testing
its 100% owned SBD Gold Property in the
Battle Mountain area of Nevada has started and is expected to continue
through until the end of April, 2007. Three holes have now been
completed on the South Zone and holes are planned for the West
and North zones as well, before testing at least one of the new
geophysical targets.
SBD is an under explored area in the context
of modern concepts of gold emplacement in this part of Nevada.
This initial drill program will serve to confirm earlier exploration
data and begin testing the exciting new targets located by the
geophysical program. Initial assay results from this drilling are
expected in 3-4 weeks.
Maps of the target areas and compiled geophysical
results are available on the Company Website, www.spartonres.ca.
FLOW THROUGH FINANCING COMPLETED
Sparton has also closed the previously
announced subscription agreement ( see news release dated March
20, 2007) with Mineralfields Group ("Mineralfields", the "Subscriber")
wherein the Company has sold to Mineral fields $500,000 in Flow-Through
Units (the "Units")
at a price of $0.25 per Unit for a total of 2,000,000 Units.
Each Unit consists of one common share and one-half (1/2) share
purchase warrant with a term of 24 months exercisable at a price
of $0.35 for the first 12 months and $0.50 in the second 12 months
after the closing date of April 5, 2007. The warrant contains
a provision whereby it will expire (if unexercised) within 15
business days after Mineralfields has received written notice
that Sparton's share price has traded and closed for 20 consecutive
trading days at $0.50 or higher for the first 12 months after
April 5, 2007, and $0.70 or higher in the second 12 months after
April 5, 2007.
Limited
Market Dealer Inc. has received a (cash) 7 % Finders Fee on the
proceeds, and Finders Fee Options equal to 5% of the number of
Units subscribed for (total 100,000 Units) at an exercise price
of $0.20 per Unit.
Shares issued as a result of sale of the Units
will have a 4 month hold period which will expire on August 5,
2007, and shares will be freely tradable on August 6, 2007.
Mineralfields
Group (a division of Pathway Asset Management)
is a Toronto-based mining fund with significant assets under
administration. It offers super flow-through limited partnerships
to investors in Canada and hard dollar resource limited partnerships
to domestic and international investors. Information is available
at www.mineralfields.com. This is the second financing arranged
by Mineralfields on behalf of the Company. Proceeds will be
used to fund Sparton's exciting new "Whiskey" copper-uranium
project in New Brunswick, where geophysical surveys will begin
this month, and Sparton's other Canadian exploration activities.
FOR
FURTHER INFORMATION PLEASE CONTACT: |
