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TORONTO, November 11, 2025 (GLOBE NEWSWIRE) — Sparton Resource Inc. (TSXV-NII) (“Spartan” or “Company“) is pleased to announce the closing on November 7th2025 (the “Issue Date”) of the first tranche of the non-brokered private placement (the “Issue Date”) of the first tranche of the non-brokered private placement (the “Issue Date”) of the first tranche of the non-brokered private placement (the “Issue Date”).Offer“), announced October 30, 2025, with gross proceeds of C$210,000.
Sparton issued 6,000,000 shares of Quebec Flow-Through (“KFTS“) Divisions of the Company (each, “KFTS Department“) at a price of C$0.035 per KFTS Department for proceeds of C$210,000. Every KFTS Department will consist of one common share of the Company, one-half of which will not vest through a share purchase warrant (“SPV“) or a total of 3,000,000 full SPVWith. Each one is full SPV entitles its owner to purchase one ordinary share of the Company (each – “Share warrant“) priced at C$0.08 for 12 months after Release date.
Every KFTS will consist of one common share of the Company, which will be issued as a “flowing share” of Critical Metals within the meaning of Income Tax Law (Canada).
The Company intends to use proceeds from the offering for exploration of its critical metals projects in Quebec; particularly at the Pense-Montreuil base metals project east of Englehart, Ontario, and on the Ontario-Quebec border, where historical exploration has identified low-grade cobalt zinc-copper-nickel mineralization and where little activity has occurred for over 20 years. The work will consist of subsequent exploration of aerial photography and diamond core drilling.
Gross proceeds from issue KFTS will be used to fund resource exploration expenditures, which will constitute “Canadian exploration expenditure” as defined in subsection 66.1(6) of the Income Tax Act, and a “mineral expenditure stream” as defined in subsection 127(9) of the Income Tax Act (“Qualifying Expenses“), which will be waived with an effective date no later than December 31, 2025 for purchasers KFTS in the aggregate amount not less than the gross income received from the issue of bonds. KFTS. If the Canada Revenue Agency reduces related expenses, the Company will reimburse each subscriber KFTS units for any additional taxes payable by such subscriber as a result of the Company's failure to waive Qualifying Expenses.
Closing The Offering has received necessary regulatory approvals, including from the TSX Venture Exchange.
Finder fees of $14,700 in cash and 420,000 full brokerage warrants were paid and issued to third-party finders.
KFTS, Share Warrants and any shares of the Company's common stock that may be issuable upon the exercise of warrants of any outstanding person will be subject to a hold period ending on a date that is four months plus one day after the issuance date of March 8, 2026, 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 (“US Securities Law“) or any U.S. state securities laws, and may not be offered or sold in the United States 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 or any other jurisdiction.
For more information contact:
A. Lee Barker, M.S., Professor of Engineering.
President and CEO
Tel/fax: 647-344-7734 or mobile: 416-716-5762.
E-mail: [email protected]
Website: www.spartonres.ca
Neither the 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.
Forward-Looking Statements
The information set forth in this press release constitutes forward-looking statements within the meaning of applicable securities laws. Forward-looking statements contained herein include, but are not limited to, financing and ongoing transactions, and all such forward-looking statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this press release are made as of the date hereof, and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities laws. Although the Company believes that the expectations expressed in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct and, accordingly, undue reliance should not be placed on such forward-looking statements. This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein.
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