Star Metro - Sparton Signs Definitive Morrison Silver Mine Option and Joint Venture Agreement with Glen Eagle; Appoints Vice President, Corporate Development

Sparton currently holds an option to acquire a 100% interest in the Morrison Property pursuant to an agreement announced June 18, 2026. Under the Agreement, Glen Eagle has been granted the exclusive right to earn up to a 70% interest in the Morrison Property over a three-year option period by making specified cash payments and share-cost compensation and by funding exploration expenditures. Following a successful earn-in and satisfaction or waiver of the applicable earn-in conditions, the parties will form a joint venture with initial participating interests of 70% Glen Eagle and 30% Sparton. The grant and exercise of the option are subject to applicable TSX Venture Exchange requirements and the terms of the Agreement. The Agreement is an arm's length transaction, there is no finder's fee, and the transaction will be subject to prior Exchange approval.

The Company is also pleased to announce the appointment of Sparton director Jamal Amin as Vice President, Corporate Development. In his expanded role, Mr. Amin will work with President and CEO A. Lee Barker on the advancement of the Morrison Property and Sparton's broader project evaluation, strategic transactions and corporate development activities.

Transaction Highlights

• Three-year earn-in: Glen Eagle may earn a 70% interest in the Morrison Property over the option period.

• $500,000 exploration program: If Glen Eagle completes the full earn-in, aggregate Work Costs will total $500,000, consisting of $150,000 by the first anniversary, a further $175,000 by the second anniversary and a further $175,000 by the third anniversary. The initial $150,000 work commitment is a firm commitment; later-year commitments apply if Glen Eagle continues with the option.

• $112,500 in option payments: If the option proceeds through its full term, cash option payments total $112,500: $25,000 following the effective date and required Exchange approval, $35,000 by the first anniversary and $52,500 by the second anniversary.

• $20,000 share-cost compensation: Glen Eagle is to make $20,000 of share-cost compensation to Sparton, of which $3,500 has previously been paid.

• Sparton remains operator: Sparton will operate exploration programs during the option period and is entitled to a management fee equal to 10% of applicable Work Costs.

• 30% retained joint-venture interest: Upon successful completion of the earn-in, the parties will form a joint venture with Glen Eagle holding 70% and Sparton holding 30%, subject thereafter to the dilution and other provisions of the Agreement.

The underlying vendor of the Property will retain a 2% net smelter returns (NSR) royalty on production, of which 1% can be acquired for $350,000.

A. Lee Barker, President and CEO of Sparton, commented:

"Morrison's history of high-grade silver production and the amount of work that remains to be done using modern exploration methods makes this an exciting opportunity for both companies. This agreement provides Sparton with a practical way to advance Morrison while preserving meaningful exposure to the project's upside. Glen Eagle can earn its interest by funding a substantial exploration program, while Sparton remains operator during the option period and retains a 30% interest following a successful earn-in.

We are also pleased to expand Jamal's role with Sparton. He has already become an active member of the team, and his combination of geological, project-evaluation and corporate development experience will add capacity as we advance Morrison and continue evaluating new opportunities for the Company."

Morrison Silver Mine Property

The Morrison Mine is a past-producing silver property in the historic Gowganda silver camp of northeastern Ontario. Historical records previously disclosed by Sparton report production of more than 750,000 ounces of silver during intermittent operations between 1912 and 1955, at a reported final average grade of approximately 25 ounces of silver per short ton. Cobalt was the only other metal reported from historical production records.

The four-claim property contains a capped historical shaft reported to extend approximately 600 feet below surface. Historical information identifies eight near-vertical veins that were partially mined and refers to additional silver-bearing areas encountered by exploration drilling that were not subsequently followed up with mine development.

The Morrison Mine is also notable for rich native silver mineralization. A Geological Survey of Canada publication reports that a mass of native silver weighing more than 22 kilograms was recovered from the property in its early history and describes a calcite vein containing a rich streak of native silver. Morrison material is also represented in the Royal Ontario Museum's mineral collection.

Planned Exploration and Next Steps

Sparton and Glen Eagle are coordinating the initial Morrison exploration program. Based on Sparton's review of the historical information, the Company expects the first phase to focus on refining priority targets and evaluating unmined areas around the historical workings using surface exploration and drilling, subject to final program design, permitting and applicable regulatory approvals.

Karl Trudeau, President of Glen Eagle, commented:

"Morrison is exactly the kind of asset that gets an exploration team excited - a past-producing, high-grade silver mine with a documented history of more than 750,000 ounces of production at roughly 25 ounces per ton, and vein systems that were never fully tested with modern methods. This Agreement gives Glen Eagle a direct path to earn into a potentially high-grade Canadian silver system. We are looking forward to putting drills to work alongside Sparton's team and writing Morrison's next chapter."

Appointment of Vice President, Corporate Development

Mr. Amin was elected to Sparton's Board of Directors in June 2026. He is a geologist and mining professional with experience spanning mineral exploration, project evaluation, corporate development and capital markets. He holds an Honours Bachelor of Science from the University of Waterloo and a Master of Science in geology from the State University of New York.

In his expanded role as Vice President, Corporate Development, Mr. Amin will assist management with the coordination and advancement of the Morrison program and Sparton's other exploration interests, while supporting project evaluation, strategic partnerships and corporate transactions.

In connection with the appointment, the Company has granted Mr. Amin an additional 500,000 incentive stock options exercisable at $0.05 per common share for a period of 18 months ending on March 1, 2028, subject to the terms of the Company's stock option plan and applicable TSX Venture Exchange requirements.

Qualified Person and Cautionary Note Regarding Historical Information

A. Lee Barker, M.A.Sc., P.Eng., President and CEO of Sparton, is a Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the technical information contained in this news release.

The historical production, grade, mine-development and mineral-occurrence information described above is based on historical records and published sources. Sparton believes this information is relevant and reasonably reliable; however, a Qualified Person has not completed sufficient work to independently verify all of the historical information through new exploration. The Company is not treating the historical information as a current mineral resource or mineral reserve.

About Sparton Resources Inc.

Sparton Resources Inc. is a mineral exploration company with critical-mineral and gold projects in Ontario and Quebec. The Company also holds a strategic investment in a leading vanadium redox flow battery manufacturer.

For More Information

A. Lee Barker, M.A.Sc., P.Eng.
President and CEO
Sparton Resources Inc.
Tel./Fax: 647-344-7734
Mobile: 416-716-5762
Email: [email protected]
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

This news release contains forward-looking statements within the meaning of applicable securities laws, including statements concerning the Morrison exploration program, future expenditures, the satisfaction of option and earn-in conditions, receipt of regulatory approvals, formation and operation of the joint venture, and Sparton's corporate development activities. Forward-looking statements are based on management's current expectations, estimates and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Readers should not place undue reliance on forward-looking statements. Except as required by applicable securities laws, the Company undertakes no obligation to update or revise forward-looking statements after the date of this release.

SOURCE: Sparton Resources Inc.

View the original press release on ACCESS Newswire

O.Lessard--SMC