TORONTO, Nov. 03, 2022 (GLOBE NEWSWIRE) -- Sparton Resources Inc. (TSXV-SRI) ("Sparton" or the "Company") announced today that it has entered into an option agreement with three independent prospectors (collectively, the “Vendors”) to explore the 39 claim (865 hectare) Pense Property (“the Property”) in Pense Township, Ontario. The claims are located near the Quebec provincial border, approximately 25 kilometers east of Englehart, Ontario, in the Larder Lake Mining Division.
About the Pense Property
There are a number of surface showings of steeply dipping sulphide mineralization hosted in intercalated sediments and mafic and ultramafic volcanic rocks (komatiites). At least 2 priority areas with past diamond drill hole intersections warrant follow-up evaluation. Copper, Zinc, Gold, Silver, Nickel and Cobalt have all been reported from past surface sampling and historical drilling. The last drilling program on the Property was in 1997. One historical hole, in 1997, recorded 0.893% copper, 1.30% zinc, 4.12 grams per tonne silver, and 1.69 grams per tonne gold, over a core length of 9.02 meters. This zone was not followed-up with more drilling and is associated with a distinct magnetic and electromagnetic anomaly from past ground surveys. (Reference Ontario MNDM File Number MD131M13SE00008)
The Pense claims are accessible from paved Highways 11 and 569, local forestry roads and logging trails. The Property contains a number of stratigraphically and structurally hosted polymetallic mineral occurrences. The last significant work was done in 2008.
A comprehensive ground or airborne magnetic survey has not been completed on the entire claim group. Limited historical magnetic surveys covering the principal zones intersected by historical drilling have indicated well defined magnetic and electromagnetic anomalies related to the rock types and zones hosting the mineralized material.
Under the terms of the 3-year option agreement, Sparton will issue a total of 400,000 common shares, incur a total of $250,000 in exploration expenditures on the Property, and make cash payments totaling $175,000 over the 3- year period, to earn a 100% interest in the Property, detailed as follows:
Upon Receipt of Regulatory Approval: a cash payment of $25,000, issuance of a total of 100,000 common shares to the Vendors, and a commitment to incur exploration expenditures of $50,000 in first year.
In Year 2: Cash payment of $50,000, 150,000 common shares to be issued to the Vendors, and exploration expenditures of $100,000. (Optional)
In Year 3: Cash payment of $100,000, 150,000 common shares to be issued to the Vendors, and exploration expenditures of $300,000. (Optional)
Production Royalty: If commercial production takes place on the Pense Property, the Vendors, will be entitled to receive an annual production royalty (the “Royalty”) equal to 2% of Net Smelter Returns, as customarily defined. At any time after a feasibility study is completed for development of any part of the Property, ½ of this Royalty (or 1%) may be purchased by the Company for the sum of $2,000,000. The Company will also have a right of first refusal to purchase the remaining 1% NSR Royalty.
All cash payments, share issuances and royalty payments, if any, will be paid or issued as to 33.333% of the totals to each vendor.
The agreement is subject to final regulatory and Company board approval.
Work Program
All data available for the Property is being compiled and a field program to relocate past drill holes and survey grids will be undertaken next field season. Drone supported Lidar and magnetic surveys will then be completed and various zones identified for surface prospecting and for possible drilling in the future.
“The Pense Property appears to have been overlooked in recent years and there is enough documented polymetallic mineralization on the Property to warrant follow-up and a detailed evaluation,” stated A. Lee Barker Sparton’s CEO. The area is easily accessible, and we are looking forward to beginning our evaluation in the coming weeks.”
Cautionary Statement
It should be noted that the technical data reported here are historical in nature and do not include any more recent information or data available to Sparton, and more work needs to be done to verify these historical results.
A. L. Barker M.A.Sc., P. Eng., is the Qualified Person under NI 43-101 for the technical information in this news release and has reviewed all available data for the Pense Property and approved the contents of this news release.
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
Email: info@spartonres.ca Website: www.spartonres.ca
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.
Forward-Looking Statements
Information set forth in this news release involves forward-looking statements under applicable securities laws. The forward-looking statements contained herein include, but are not limited to, financings and transactions being pursued, and all such forward-looking statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this news 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 legislation. Although the Company believes that the expectations represented 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 put on such forward-looking statements. This news release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein.
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