Sprott Resource Corp. Announces Holdings in Stonegate Agricom Ltd.
TORONTO, July 24, 2013 /CNW/ - Sprott Resource Corp. ("SRC") (TSX: SCP)
announced today that, through Sprott Resource Partnership ("SRP"), it holds
70,950,462 common shares of Stonegate Agricom Ltd. ("Stonegate"), which based
on information contained in documents publically filed by Stonegate,
represents approximately 37.5% of the total issued and outstanding common
shares of Stonegate (the "Shares").
On July 24, 2013, Stonegate completed a previously announced short form
prospectus offering (the "Offering") of units (the "Units") of Stonegate.
The Offering was conducted by a syndicate of agents co-lead by GMP Securities
L.P. and Cormark Securities Inc. and including BMO Capital Markets
(collectively, the "Agents"). SRC, through SRP, acquired beneficial
ownership of 12,500,000 Units for a purchase price of $0.30 per Unit (the
"Offering Price") pursuant to the Offering. Each Unit consists of one Share
and one Share purchase warrant (a "Warrant"). Each Warrant will entitle the
holder thereof to purchase one Share at an exercise price of $0.40 per Share
for a period of 24 months following the closing of the Offering. The Agents
have the option to arrange for the sale of up to that number of additional
Shares and/or Warrants as is equal in aggregate to 15% of the number of Units
issued under the Offering during the 30 day period immediately following the
closing of the Offering (the "Over-Allotment Option").
Prior to this acquisition, SRC beneficially owned 58,450,462 Shares. Following
completion of the Offering, SRC beneficially owns 70,950,462 Shares, which
based on information contained in documents publically filed by Stonegate,
represents approximately 37.5% (or 36.5% if the Over-Allotment Option is
exercised in full) of the issued and outstanding Shares. SRC, through SRP,
also acquired 12,500,000 Warrants, which based on information contained in
documents publically filed by Stonegate, represents approximately 37.5% (or
32.6% if the Over-Allotment Option is exercised in full) of the issued and
SRC acquired beneficial ownership of the Shares and Warrants for investment
purposes. SRC may, directly or indirectly, purchase or sell securities of
Stonegate in the future on the open market, in private transactions or
otherwise, depending on market conditions and other factors material to the
investment decisions of SRC.
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 and SRP's future intentions
regarding the purchase or sale of securities of Stonegate and the exercise of
the Over-Allotment Option. 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.
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 28, 2013. 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
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
For further information or to obtain a copy of SRC's early warning report
filed pursuant to National Instrument 62-103 with respect to the Offering,
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- Jul/24/2013 19:47 GMT
Press spacebar to pause and continue. Press esc to stop.