Sparton Resources Inc.
TSX VENTURE : SRI

Sparton Resources Inc.

April 09, 2007 13:34 ET

Sparton Resources Inc.: SBD Drill Program Underway in Battle Mountain Nevada; Flow Through Financing Closed

TORONTO, ONTARIO--(CCNMatthews - April 9, 2007) - Sparton Resources Inc. (TSX VENTURE:SRI) (the "Company") announced today that a 1500 meter reverse circulation drill program testing its 100% owned SBD Gold Property in the Battle Mountain area of Nevada has started and is expected to continue through until the end of April, 2007. Three holes have now been completed on the South Zone and holes are planned for the West and North zones as well, before testing at least one of the new geophysical targets.

SBD is an under explored area in the context of modern concepts of gold emplacement in this part of Nevada. This initial drill program will serve to confirm earlier exploration data and begin testing the exciting new targets located by the geophysical program. Initial assay results from this drilling are expected in 3-4 weeks.

Maps of the target areas and compiled geophysical results are available on the Company Website, www.spartonres.ca.

FLOW THROUGH FINANCING COMPLETED

Sparton has also closed the previously announced subscription agreement ( see news release dated March 20, 2007) with Mineralfields Group ("Mineralfields", the "Subscriber") wherein the Company has sold to Mineral fields $500,000 in Flow-Through Units (the "Units") at a price of $0.25 per Unit for a total of 2,000,000 Units. Each Unit consists of one common share and one-half (1/2) share purchase warrant with a term of 24 months exercisable at a price of $0.35 for the first 12 months and $0.50 in the second 12 months after the closing date of April 5, 2007. The warrant contains a provision whereby it will expire (if unexercised) within 15 business days after Mineralfields has received written notice that Sparton's share price has traded and closed for 20 consecutive trading days at $0.50 or higher for the first 12 months after April 5, 2007, and $0.70 or higher in the second 12 months after April 5, 2007.

Limited Market Dealer Inc. has received a (cash) 7 % Finders Fee on the proceeds, and Finders Fee Options equal to 5% of the number of Units subscribed for (total 100,000 Units) at an exercise price of $0.20 per Unit.

Shares issued as a result of sale of the Units will have a 4 month hold period which will expire on August 5, 2007, and shares will be freely tradable on August 6, 2007.

Mineralfields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with significant assets under administration. It offers super flow-through limited partnerships to investors in Canada and hard dollar resource limited partnerships to domestic and international investors. Information is available at www.mineralfields.com. This is the second financing arranged by Mineralfields on behalf of the Company. Proceeds will be used to fund Sparton's exciting new "Whiskey" copper-uranium project in New Brunswick, where geophysical surveys will begin this month, and Sparton's other Canadian exploration activities.

The TSX Venture Exchange has not reviewed and does not accept responsibility for adequacy or accuracy of the content of the information contained herein.

Contact Information

  • Sparton Resources Inc.
    A. Lee Barker
    President and CEO
    (416) 366-3551 or (416) 716-5762 (mobile)
    (416) 366-7421 (FAX)
    Email: info@spartonres.ca
    or
    Sparton Resources Inc.
    Edward G. Thompson
    Director
    (416) 366-6083
    (416) 366-2713 (FAX)
    Email: egt@interlog.com
    Website: www.spartonres.ca