Sparton Resources Inc.

Sparton Resources Inc.

October 19, 2009 12:27 ET

Sparton Closes Second Tranche of Non-Brokered Private Placement Financing

TORONTO, ONTARIO--(Marketwire - Oct. 19, 2009) - Sparton Resources Inc. (TSX VENTURE:SRI) (the "Company") is pleased to announce that it has closed the second and final tranche of the non-brokered private placement originally announced on September 24, 2009. On October 16, 2009 the Company issued 1,766,667 flow-through units (the "Flow-Through Units") at a price of $0.12 per unit for aggregate gross proceeds of $212,000.

The Flow-Through Units are comprised of one common share of the Company and one share purchase warrant (the "Warrant"). Each Warrant is exercisable for one additional common share at a price of $0.15 per share until October 18, 2010. The Company paid commissions of $10,260 and issued 98,333 broker warrants (the "Broker Warrants") to registered dealers 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 17, 2011.

The first tranche of the financing closed on October 5, 2009 and was described in the Company's press release dated October 7, 2009. The proceeds of both tranches of the financing will be used to fund the Company's ongoing Canadian exploration programs and for general corporate purposes.

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)
    Sparton Resources Inc.
    Edward G. Thompson
    int'l +1 416-366-6083
    +1 416-366-2713 (FAX)