Sparton Closes Second Tranche of Non-Brokered Private Placement Financing
Sparton Resources Inc. 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.
