Osisko expands Hammond ReefThe Properties straddle Osisko's Hammond Reef Project
SPARTON RESOURCES INC. (TSX VENTURE:
SRI |PowerRating), (the "Company") ispleased to announce today that it has closed a $500,000 privateplacement with Osisko Mining Corporation ("Osisko"), (TSX:
OSK |PowerRating)(FRANKFURT: EWX) as part of the binding Letter of Intent (LOI)whereby Osisko has the option to acquire up to a 70% interest inapproximately 7500 hectares of mining claims held under option fromthird parties and wholly-owned by Sparton (the "Properties") in theAtikokan Gold Area, Ontario. See Sparton News Release dated November11, 2010.
Osisko has subscribed to 2,000,000 Sparton Units at a price of
.25per Unit, for gross proceeds to Sparton of $500,000. Each Unitconsists of one common share and one-half transferable common sharepurchase warrant. Each whole transferable common share purchasewarrant entitles Osisko to acquire one Sparton common share for
.40for a period of 1.5 years from December 1, 2010.
The Properties straddle Osisko's Hammond Reef Project which hosts aNI 43-101 compliant inferred resource of 6.7 million ounces of gold(259.4 million tonnes at a grade of 0.8 grams per tonne, using 0.3grams per tonne cut-off), of which 97% lies within 300 metres ofsurface. There are currently 17 drills actively exploring the HammondReef Project, making it one of the largest gold exploration programsin Canada.
Osisko is currently reviewing all exploration data generated bySparton during its work programs on the Properties, and is planningnew work for 2011.
Sparton Resources Inc. is a Canadian mining and exploration companyfocussed on gold exploration in Canada. It is also presentlyoperating (through its subsidiaries) a producing germanium mine inChina, and developing secondary uranium recovery businesses in Chinaand Canada from radioactive waste such as coal ash, mine waste andtailings, and other types of material.
Company website:
www.spartonres.ca
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