Sprott Resource Corp. Declares March Dividend
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 "March Dividend").
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 securities laws.
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. ST: Ontario NI: MNG DIV
-0- Mar/18/2013 20:45 GMT