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Sparton Resources: Private Placement Offering of up to C$800,000 For its Critical Metals Exploration Programs

Press Release

TORONTO, December 8, 2023 – Sparton Resources Inc. (TSXV-SRI) (“Sparton” or the “Company”) is pleased to announce non-brokered private placements (the “Offering”) for gross proceeds of up to C$800,000.

Up to 13,000,000 Flow-Through Share (“FTS”) units of the Company (each, a “FTS Unit”) will be offered at a price of C$0.05 per FT Unit for proceeds of up to C$650,000. Each FTS Unit will consist of one common share of the Company and a ½ (one half) non-flow through Share Purchase Warrant (“SPW”). Each full SPW will entitle the holder thereof to purchase one common share of the Company (each, a “Warrant Share”) at a price of C$0.08 for a period of 24 months following the issue date.

The Company will also offer up to 3,750,000 Non-Flow-Through (“NFTS”) share Units at a price of $0.04 per Non-Flow Through Share unit for proceeds of up to C$150,000. Each NFTS will consist of one common share of the Company and a ½ (one-half) SPW. Each full SPW will entitle the holder thereof to purchase one common share of the Company (each, a “Warrant Share”) at a price of C$0.06 for a period of 24 months following the issue date.

Each FTS will consist of one common share of the Company to be issued as a Critical Metals “flow-through share” within the meaning of the Income Tax Act (Canada)

The Company intends to use the proceeds of the offering for the exploration of the Company’s Critical Metals projects in Ontario and Quebec. These include the Pense -Montreuil polymetallic metals project east of Englehart Ontario and straddling the Ontario- Quebec border where historic work has identified zinc-copper-nickel mineralization with minor cobalt values, and little work has been done for over 20 years. The Oakes gold and related copper mineralization project near Matachewan Ontario has over 5 untested drill targets in close proximity to the former producing Ryan Lake copper and molybdenum mine, and the current Young Davison gold producer.

Work will consist of airborne electromagnetic surveys, follow up ground truthing of anomalies and diamond core drilling. The Oakes project has a number of untested Induced Polarization zones outlined by the Company that have never been tested and some of these are related to rock units similar to those hosting the nearby copper and molybdenum mineralization.

The gross proceeds from the issuance of the FTS will be used to incur resource exploration expenses which will constitute “Canadian exploration expenses” as defined in subsection 66.1(6) of the Income Tax Act and & “flow through mining expenditures” as defined in subsection 127(9) of the Income Tax Act (the “Qualifying Expenditures”), which will be renounced with an effective date no later thanDecember 31, 2023 to the purchasers of the FT Units in an aggregate amount not less than the gross proceeds raised from the issue of the FT Shares. If the Qualifying Expenditures are reduced by the Canada Revenue Agency, the Company will indemnify each subscriber of FTS Units for any additional taxes payable by such subscriber as a result of the Company’s failure to renounce the Qualifying Expenditures.

The closing of the Offering is subject to receipt of all necessary regulatory approvals including the TSX Venture Exchange. Finder’s fees or commissions will be payable in accordance with the market and policies of the TSX Venture Exchange. The FTS, Warrant Shares and any common shares of the Company that are issuable from any finder’s warrants will be subject to a hold period ending on the date that is four months plus one day following the issue date in accordance with applicable securities laws.

The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or an applicable exemption from the registration requirements of the U.S.Securities Act and applicable U.S. state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor in any other jurisdiction.

For more information contact:
A. Lee Barker, M.A Sc., P. Eng.
President and CEO
Tel./Fax: 647-344-7734 or
Mobile: 416-716-5762



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