TORONTO, March 18, 2013 /CNW/ - Sprott Resource Corp. ("SRC") (TSX: SCP)
announced today that its Board of Directors has declared a dividend in respect
of the month of March 2013 in the amount of $0.038 per common share (the
The March Dividend will be paid on April 12, 2013 to shareholders of record at
the close of business on March 28, 2013. The full amount of the March
Dividend is designated as an "eligible dividend" for purposes of the Income
Tax Act (Canada).
SRC has a Dividend Reinvestment Plan (the "Plan") for Canadian resident
shareholders of common shares of SRC. The Plan provides a convenient and
cost-effective method for eligible holders in Canada to maximize their
investment in SRC by reinvesting their monthly cash dividends to acquire
additional SRC common shares. A discount in the purchase price of 5% will
apply on dividend reinvestment shares purchased from SRC.
As previously announced, SRC's Board of Directors 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 March 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.
Dividend Reinvestment Plan
For more information about the Plan, or to request or download a copy of the
detailed Plan Offering Circular, please contact the Plan Agent, CIBC Mellon
Trust Company, via its administrative agent Canadian Stock Transfer Company
Inc. ("CST"), by phone at 1-800-387-0825 or 416-682-3860, by e-mail to
firstname.lastname@example.org, or visit CST's website at www.canstockta.com (go to
"Investor Services" and "Dividend Reinvestment Plans"). A copy of the Plan
Offering Circular is also available on our website at www.sprottresource.com
(go to "Investors" and "DRIP Information").
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 dividend
reinvestment plan (including applicable discounts to the purchase price).
Forward-looking statements or information are based on a number of
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 and
assumptions reflected in such forward-looking information and statements are
reasonable, undue reliance should not be placed on forward-looking information
and statements because SRC can give no assurance that such expectations and
assumptions 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
statements, 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 29, 2012. Should one or more of these risks or uncertainties
materialize, or should assumptions underlying the forward-looking information
and statements prove incorrect, actual results, performance or achievements
could vary materially from those expressed or implied by the forward-looking
information and statements contained in this news 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
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.
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CO: Sprott Resource Corp.
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-0- Mar/18/2013 20:45 GMT
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