Sprott Resource Corp. Institutes Monthly Dividend

TORONTO, Dec. 12, 2012 /CNW/ - Sprott Resource Corp. ("SRC") (TSX: SCP) 
announced today that its Board of Directors has declared an initial monthly 
dividend of $0.038 per common share (the "Initial Dividend"). 
The Initial Dividend will be paid on January 15, 2013 to shareholders of 
record at the close of business on December 31, 2012. The full amount of the 
Initial Dividend is designated as an "eligible dividend" for purposes of the 
Income Tax Act (Canada). 
Dividend Policy 
SRC's Board of Directors also approved a policy (the "Dividend Policy") 
pursuant to which SRC intends to pay a monthly dividend at least equal to 
0.833% of SRC's total equity attributable to shareholders ("SRC's Book Value") 
based on the most recently filed financial statements of SRC at the time the 
dividend is declared.The amount of future monthly dividends will 
accordingly fluctuate quarterly with SRC's Book Value. 
The Initial Dividend is based on SRC's Book Value as at September 30, 2012, 
adjusted to take into consideration the increase in SRC's Book Value due to 
its disposition of Waseca Energy Inc., as will be the monthly dividends that 
are declared prior to the filing of SRC's financial statements for the year 
ending December 31, 2012 
"We are committed to providing shareholders with an attractive total return 
and increased liquidity," said Kevin Bambrough. "We feel that our business 
has matured such that monetizations of our portfolio companies will be more 
predictable and the returns on such monetizations will support the Dividend 
Policy and grow SRC's Book Value per common share." 
As disclosed in SRC's press release dated November 14, 2012, since inception 
in 2007, SRC has achieved an internal rate of return on investments((1)) of 
approximately 28% and gross gains, excluding taxes and fees, of approximately 
$365 million, of which $280 million are gross realized gains. In addition, 
since inception management has repurchased approximately $72 million in common 
shares, with over $38 million repurchased in 2012 alone. Based on its 
historical returns and its return expectations, management believes that it 
can sustain the Dividend Policy and grow SRC's Book Value per common share 
over the long term. 
Dividend Reinvestment Plan 
SRC also intends to adopt a dividend reinvestment plan ("DRIP") early in 
2013. The DRIP will allow eligible shareholders of SRC to direct their 
dividends to be reinvested in additional SRC common shares which may be 
purchased in the market at prevailing market prices or issued from treasury at 
a price which may include a discount of up to 5% of the market price of SRC's 
common shares (as such term will be defined in the DRIP). 
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 to SRC's dividend policy and its 
intention to adopt the DRIP. 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. The payment of dividends is not guaranteed and the amount and 
timing of any dividends payable by SRC will be at the discretion of the Board 
of Directors and will be established on the basis of SRC's earnings, the 
satisfaction of solvency tests imposed by applicable corporate law for the 
declaration and payment of dividends, and other relevant factors. 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 differ materially from those anticipated in such 
forward-looking information or statements, including, without limitation, 
those listed under the heading "Risk Factors" in SRC's annual information form 
dated March 27, 2012. Should one or more of these risks or uncertainties 
materialize, or should assumptions underlying the forward-looking statements 
prove incorrect, actual results, performance or achievements could vary 
materially from those expressed or implied by the forward-looking statements 
contained in this release. 
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 
securities laws. 
(1) Non-IFRS Financial Measures 
Internal rate of return is a rate of return measure often used in investment 
analysis to compare investment opportunities. The Company believes that 
providing an internal rate of return measure on a supplemental basis to our 
IFRS results is helpful to investors in assessing the overall performance of 
the Company over the past five years. Non-IFRS financial measures do not have 
a standardized meaning prescribed by IFRS and are therefore unlikely to be 
comparable to similar measures presented by other issuers. Past performance is 
not a reliable indicator of future results. 
The internal rate of return calculation incorporated cash flows beginning on 
September 30, 2007 related to issuance of common shares, including through the 
exercise of warrants and stock options, the repurchase of common shares 
through normal course issuer bids and the payment of management fees and 
incentive fees and excludes income taxes paid. The calculation also includes 
management's estimate of the fair value of subsidiaries and entities over 
which the Company has significant influence, if different from the net asset 
value reflected in the Company's financial statements. The internal rate of 
return calculation does not correlate perfectly with the performance of the 
Company's quoted stock price from its listing on the listed on the Toronto 
Stock Exchange, or the compound annual growth rate of the net asset value due 
to the adjustments described above. 
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: 
http://www.newswire.ca/en/releases/archive/December2012/12/c8397.html 
CO: Sprott Resource Corp.
ST: Ontario
NI: MNG DIV  
-0- Dec/12/2012 16:06 GMT
 
 
Press spacebar to pause and continue. Press esc to stop.