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Sparton
Resources Inc. (TSX VENTURE:SRI)Sparton Resources Inc. (TSX
VENTURE: SRI) (the "Company") announced today that
it plans to begin drill testing its 100% owned SBD Gold Property
in the Battle Mountain area of Nevada during the last week of
March, 2007. A drilling permit has been received from the Nevada
Bureau of Land Management and a contract signed with Diversified
Drilling LLC of Missoula, Montana for a minimum of 1300 metres
of reverse circulation drilling to begin on or about March 28,
2007. The Company has also arranged a new financing through
the sale of flow through shares for expenditures on its new
"Whiskey" copper-uranium project in eastern Canada
and entered into an agreement with an investor relations firm
to enhance investor awareness about Sparton's portfolio of energy
and precious metals projects.
SBD
DRILL PROGRAM
As reported in earlier news releases (Jan 5,
2007, March 22, and July 11, 2006 etc.) the recently completed
geophysical program has highlighted strong structures hosting
the three known gold zones at SBD as well as outlining four
new zones which have never been drill tested. Previous drilling
located wide intersections of 1.0 -1.5 g/t gold with local higher
grade zones up to 5-9 g/t gold and the older exploration work
emphasized a stratigraphic model (favourable rock types) as
the hosts for the known gold mineralization without testing
the structural zones and related intrusive rocks which are now
known to be the dominant hosts for much of the gold in the Battle
Mountain Area. SBD is centrally located in an area hosting nearly
15 million ounces of past, present, and planned gold production
which is dominantly controlled by Newmont Mining.
Seven to ten holes are planned from four or
five separate locations to test the North, West, and South Gold
Zones. These will be located to both verify the past results
and test for extensions of these zones. A comprehensive follow
up drill program will be organized after the completion of the
present work and compilation of all results. All past drill
data has now been entered into a digital database to allow for
more rapid interpretation of the information. Time permitting,
this drilling program will also test at least one of the new
geophysical targets.
Maps of the target areas and compiled geophysical
results are available on the Company Website, www.spartonres.ca.
The drilling program is expected to take about
three weeks to complete and results may be available within
thirty days of completion subject to laboratory work loads.
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.
FLOW
THROUGH FINANCING
Sparton has entered into a subscription agreement
with Mineralfields Group ("Mineralfields", the "Subscriber")
wherein the Company will sell to Mineral fields up to $500,000
in Flow-Through Units (the "Units") at a price of
$0.25 per Unit. Each Unit will consist 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 closing. The warrant would
contain a provision whereby the warrant will expire ( if unexercised)
within 15 business days after Mineral fields 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 and $0.70 or higher in the second 12 months after
closing.
Limited Market Dealer Inc. will obtain a (cash)
7 % Finders Fee and Finders Fee Options equal to 5% of the number
of Units subscribed for at an exercise price of $0.20 per unit.
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. Final closing is subject to certain terms and conditions
including a due diligence review on the part of the Subscriber
and is anticipated to take place on or before March 30, 2007.
Proceeds will be used to fund Sparton's exciting new "Whiskey"
copper-uranium project in New Brunswick, where geophysical surveys
are planned to begin shortly.
INVESTOR
RELATIONS PROGRAM
Additionally, Sparton has finalized an arrangement
with the Toronto based firm "Bay Street Connect" ("BSC")
to provide investor relations ("IR") services to the
Company. This organization specializes in providing communication
services to publicly listed, resource sector organizations.
The contract has an initial term of four months and may be extended
monthly by Sparton or terminated on 30 days notice. The Company
will pay a monthly fee of $5000 to BSC and grant BSC options
to purchase 200,000 common shares of Sparton at a price of $0.215
per share. These options will vest in increments of 50,000 shares
quarterly in arrears and a further 100,000 options will be granted
if Sparton maintains the consulting agreement in effect beyond
the initial four month period. All vested options will expire
if not exercised within 30 days of termination of the service
agreement. The Company looks forward to an enhanced investor
awareness of Sparton's current projects in the coming weeks
and months.
The TSX Venture Exchange has not reviewed and
does not accept responsibility for adequacy or accuracy of the
content of the information contained herein.
FOR FURTHER INFORMATION
PLEASE CONTACT:
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