Sparton Resources Inc.
TSX VENTURE : SRI

Sparton Resources Inc.

September 24, 2009 08:30 ET

Sparton Announces Non-Brokered Private Placement Financing

TORONTO, ONTARIO--(Marketwire - Sept. 24, 2009) - 

NOT FOR DISSEMINATION IN THE U.S. OR THROUGH U.S. NEWS WIRE SERVICES

Sparton Resources Inc. (TSX VENTURE:SRI) (
the "Company"), announced today that it has arranged a non-brokered private placement with accredited investors of up to 5,000,000 flow-through units (the "Flow-Through Units") at a price of $0.12 per unit for aggregate gross proceeds of up to $600,000.

Additionally, the Company has arranged a non-brokered private placement with accredited investors to purchase up to 2,500,000 non - flow through units at a price of $0.12 per unit for gross proceeds of up to $300,000.

Both the Flow-Through Units and the non – flow through units will be 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 for a period of one year following closing.

The Company is expecting the closing date to occur on or about October 2, 2009.

The proceeds of the offerings will be used to fund the Company's ongoing Canadian exploration programs and for general corporate purposes.

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. As well a portion of the proceeds of the Offering will be used for initial work programs on the NuCoal uranium coal joint venture in Saskatchewan and the initial evaluation program for the Chebucto natural gas development in offshore Nova Scotia.
 
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.

This news release and the information contained herein does not constitute an offer of securities for sale in the United States and securities may not be offered or sold in the United States absent registration or exemption from registration.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Sparton Resources Inc.
    A. Lee Barker
    President and CEO
    416-366-3551 or Mobile: 416-716-5762
    416-366-7421 (FAX)
    info@spartonres.ca
    or
    Sparton Resources Inc.
    Edward G. Thompson
    Chairman
    int'l +1 416 366 6083
    +1 416 366 2713 (FAX)
    egt@interlog.com
    www.spartonres.ca