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Sparton Resources Inc. (SRI) (the "Company"), announced that on October 5, 2009 it closed the first
tranche of the non-brokered private placement originally announced on September 24, 2009. The
Company has issued (i) an aggregate of 3,850,000 flow-through units (the "Flow-Through Units") at
a price of $0.12 per unit for aggregate gross proceeds of $462,000, and (ii) 2,500,000 non-flow
through units at a price of $0.12 per unit for gross proceeds of $300,000. Total gross proceeds
of these placements are $762,000.
Both the Flow-Through Units and the non-flow through units are comprised of one common share
of the Company and one full share purchase warrant (the "Warrant"). Each warrant will be
exercisable for one additional common share at a price of $0.15 per share until October 5, 2010.
The Company has paid commissions of $18,660 and issued 224,167 broker warrants (the "Broker
Warrants") to a registered dealer for services rendered in relation to this financing. Each of the
Broker Warrants will entitle the holder to purchase one common share of the Company at an
exercise price of $0.15 at any time up until October 5, 2011.
The proceeds of the financing will be used to fund the Company's ongoing Canadian exploration
programs and for general corporate purposes. The Company expects to complete the balance of
the flow-through offering (consisting of an additional 1,150,000 Flow-Through Units) in the near future.
WORK PROGRAM STARTED ON MARMION GOLD PROJECT
The Company has now started the work program on the West Hammond Contact claim group which
is part of the Marmion Gold Project in northwestern Ontario (see Sparton news release dated July 20,
2009). Surface prospecting, line cutting, stripping and soil sampling are underway with the initial focus
being on the Stubby Zone where gold assays of up to 48 grams per tonne Au were obtained from grab
samples earlier this year. The Stubby mineralization is very similar to that hosting the +5 million ounce
Hammond Reef gold deposit of Brett Resources and is located in the same granitic host rocks of the
Marmion batholith. Work to date has extended the Stubby mineralization and structure for over 1.5 km
from the initial discovery. Over 100 surface samples have been taken and submitted for analysis to the
ALS-Chemex laboratory in Thunder Bay Ontario. First results are expected within about two weeks and
will be reported when available. The prospecting and systematic soil sampling program will be
extended to the Clement Lake claim group later this month.
It is expected that results of this work will lead to a drill program to test the Stubby Zone and its
extensions later this year.
Sparton is one of the largest property holders in this newly developing gold camp. The West Hammond
and Clement Lake claim groups host numerous structural zones and several new and historic showings
of relatively unexplored gold mineralization. Brett Resources has recently announced that a 70,000 meter
drill program will begin shortly on its property to define and expand its gold endowment at Hammond
Reef. The area is readily accessible by a network of existing roads, has abundant electrical power
nearby and a locally available labor pool.
With rising gold prices the style of gold mineralization hosted by the Marmion batholith is becoming
an extremely attractive exploration target.
For more information about Sparton's Marmion Gold Project please visit our website at www.spartonres.ca
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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