Sparton Resources Inc.
TSX VENTURE : SRI

Sparton Resources Inc.

December 21, 2009 15:26 ET

Sparton Closes $1.785 Million Non-Brokered Private Placement Financing

TWO HOLES COMPLETED AT MARMION GOLD PROJECT

TORONTO, ONTARIO--(Marketwire - Dec. 21, 2009) - Sparton Resources Inc. (TSX VENTURE:SRI) (the "Company") is pleased to announce that it has closed the non-brokered private placement originally announced on December 2, 2009. The Company has issued (i) 4,500,000 flow-through units (the "FT Units") at a price of $0.17 per FT Unit for aggregate gross proceeds of $765,000, and (ii) 6,000,000 non - flow through units (the "Units") at a price of $0.17 per Unit for gross proceeds of $1,020,000.

The FT Units are comprised of one common share of the Company and one-half of a share purchase warrant. The Units are comprised of one common share of the Company and one whole share purchase warrant. Each whole warrant is exercisable for one additional common share of the Company at a price of $0.20 per share until December 19, 2011. The Company paid cash commissions of $142,800 and issued 1,050,000 compensation options (the "Compensation Options") to PowerOne Capital Markets Limited as a finder's fee in relation to this financing. Each of the Compensation Options will be exercisable for one Unit of the Company at a price of $0.17 per unit until December 19, 2011.

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

MARMION GOLD PROJECT UPDATE

Two drill holes have now been completed on the West Hammond claim group, part of the Company's Marmion Gold Project near Atikokan, Ontario. These tested well defined induced polarization ("IP") targets located on the 3.5 km long shear zone trending through the West Hammond claims. Both holes intersected varying amounts of sulphide mineralization (pyrite) in both altered granite and volcanic rocks along this major structure. Both holes were drilled into IP anomalies under anomalous gold in soils and / or positive grab sample sites identified by the earlier prospecting program (see Sparton news release dated December 10, 2009).

Drilling will resume in early January 2010, after a break for the Christmas holiday season. At least 10 more holes are planned for the initial program.

Sparton's domestic and 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 press release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Generally, forward-looking statements can be identified by the use of forward- looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "planned", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may" ,"could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, closing of transactions, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to exploration and development, the environment, local and foreign government regulation, currency fluctuation infrastructure, capital markets and additional funding requirements and the departure of key executives as well as those factors discussed in the Company's documents filed on SEDAR (www.sedar.com).

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws. Further information on Sparton Resources Inc. is available at www.sedar.com.

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