Sprott Resource Corp. Announces Block Purchase under Normal Course Issuer Bid
TORONTO, Nov. 26, 2012 /CNW/ - Sprott Resource Corp. ("SRC" or the "Company")
(TSX: SCP) announced today that it purchased 4 million SRC shares for $3.55
per share under its normal course issuer bid (the "NCIB"), relying on the
block purchase exemption under the NCIB rules.
SRC management is of the view that SRC's shares are trading at a significant
discount to their net asset value. SRC is committed to purchasing its
shares under its NCIB whenever they trade at a discount to their net asset
value, provided that SRC has sufficient liquidity. Since SRC's inception in
2007, including today's purchase, it has purchased and cancelled over 21.5
million shares at a total cost of approximately $71.9 million.
The NCIB, which came into effect on September 7, 2012 and expires no later
than August 31, 2013, permits SRC to purchase and cancel up to 8 million
shares. Including today's purchase, SRC has purchased and cancelled under
the NCIB approximately 4.9 million shares for a total cost of approximately
$17.5 million. The remaining 3.1 million shares that can be purchased
under the NCIB will permit SRC to purchase approximately an average of 16,475
shares per trading day until the expiry of the NCIB.
About Sprott Resource Corp.
SRC is a Canadian-based company, the primary purpose of which is to invest and
operate in natural resources. Through acquisitions, joint ventures and other
investments, SRC seeks to provide its shareholders with exposure to the
natural resource sector for the purposes of capital appreciation and real
wealth preservation. SRC is well positioned to draw upon the considerable
experience and expertise of both its Board of Directors and Sprott Consulting
Limited Partnership (SCLP), of which Sprott Inc. is the sole limited
partner. Pursuant to a management services agreement between SCLP and SRC,
SCLP provides day-to-day business management for SRC as well as other
management and administrative services. SRC invests and operates through
Sprott Resource Partnership (SRP), a partnership between SRC and Sprott
Resource Consulting Limited Partnership, an affiliate of SCLP which is the
managing partner of SRP.
Forward-looking information and statements
This news release contains certain forward-looking information and statements
within the meaning of applicable securities laws. The use of any of the words
"expect", "anticipate", "continue", "estimate", "may", "will", "project",
"should", "believe", "plans", "intends" and similar expressions are intended
to identify forward-looking information or statements. In particular, but
without limiting the forgoing, this news release contains forward-looking
information and statements pertaining future purchases of SRC shares under the
NCIB. Forward-looking statements or information are based on a number of
material factors, expectations or assumptions which have been used to develop
such statements and information but which may prove to be incorrect. Although
SRC believes the expectations reflected in such forward-looking statements or
information are reasonable, undue reliance should not be placed on
forward-looking statements because SRC can give no assurance that such
expectations will prove to be correct. The forward-looking information and
statements included in this news release are not guarantees of future
performance and should not be unduly relied upon. Such information and
statement, including the assumptions made in respect thereof, involve known
and unknown risks, uncertainties and other factors, which may cause actual
results or events to defer materially from those anticipated in such
forward-looking information or statements.
The forward-looking information and statements contained in this news release
speak only as of the date of this news release, and SRC does not assume any
obligation to publicly update or revise any of the included forward-looking
statements or information, whether as a result of new information, future
events or otherwise, except as may be expressly required by applicable
Stephen Yuzpe Chief Financial Officer Sprott Resource Corp. 200 Bay Street,
Suite 2750 Toronto, Ontario M5J 2J2 Tel: (416) 977-7333 Fax: (416) 977-9555
SOURCE: Sprott Resource Corp.
To view this news release in HTML formatting, please use the following URL:
CO: Sprott Resource Corp.
-0- Nov/26/2012 17:01 GMT
Press spacebar to pause and continue. Press esc to stop.