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Sparton Resources Inc. (SRI:TSX-V) (the "Company"),Sparton Resources Inc. (TSX VENTURE:SRI) (the "Company") announced today that it has arranged a non-brokered private placement (the "Offering") of (i) up to 4,500,000 flow-through units (the "FT Units") at a price of $0.17 per FT Unit for aggregate gross proceeds of up to $765,000, and (ii) up to 6,000,000 non - flow through units (the "Units") at a price of $0.17 per Unit for gross proceeds of up to $1,020,000.
The FT Units will be comprised of one common share of the Company and one-half of a share purchase warrant. The Units will be comprised of one common share of the Company and one whole share purchase warrant. Each whole warrant will be exercisable for one additional common share of the Company at a price of $0.20 per share for a period of two years following the closing date ("Closing").
The Company is expecting the Closing to occur on or about December 15, 2009. Closing is conditional upon receipt of all required regulatory approvals.
The proceeds of the offerings will be used to fund the Company's ongoing exploration and development programs and for general corporate purposes.
Finders fees equal to 8% of the gross proceeds of the financing will be paid to PowerOne Capital Markets Limited (the "Finder"). The Finder will also receive finders warrants (the "Finders Warrants") equal to 10% of the total number of Units and FT Units sold. Each Finders Warrant will entitle the Finder to purchase one Unit at a price of $0.17 for a period of two years from the Closing.
The Company has developed a strategic plan in Canada to focus on exploration of its highly prospective Marmion Gold Project in northern Ontario, near Brett Resources Inc.'s major Hammond Reef gold deposit. A portion of the proceeds of the Offering will be used for work programs on the NuCoal uranium coal joint venture in Saskatchewan and the evaluation work for the Chebucto natural gas development, offshore Nova Scotia.
As a profitable germanium producer, and a developing uranium producer from waste in China through its Chinese subsidiary companies, Sparton will also continue its programs to further develop these businesses.
Sparton's international exploration, development, and evaluation programs are being carried out under the direct supervision of A. Lee Barker, P. Eng., P Geol., the Company's President and CEO who is a Qualified Person under National Instrument 43-101.
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