/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
TORONTO, Sept. 5, 2012 /CNW/ - (TSX: SCP) - Sprott Resource Corp. ("SRC") is pleased to announce that it intends
to commence a normal course issuer bid (the "Bid") to repurchase up to
8.0 million of its common shares (the "Shares"), representing
approximately 9.27% of the public float of SRC and approximately 7.39%
of the total number of issued and outstanding Shares. As at August 14,
2012, there were 108,309,310 Shares of SRC outstanding. Purchases will
be made for cancellation through the facilities of the Toronto Stock
Exchange (the "TSX") or other Canadian market places at the prevailing
market price of the Shares.
SRC has received approval from the TSX to commence the Bid on September
7, 2012. The Bid will end on the earlier of (i) August 31, 2013, (ii)
when the number of common shares sought under the Bid have been
obtained, and (iii) when notice is given by SRC to the TSX terminating
the Bid if SRC determines that it is appropriate to do so. Pursuant to
TSX policies, daily purchases made by SRC may not exceed 19,043 Shares,
being 25% of the six-month average daily trading volume of 76,175
Shares on the TSX, subject to certain prescribed TSX exceptions
including the "block purchase exemption".
In connection with the Bid, SRC has established an Automatic Repurchase
Plan (the "Plan") with a broker to facilitate purchases of SRC's common
shares under the Bid. The Plan permits SRC to provide standing
instructions to its broker as to how SRC's common shares are to be
repurchased, including during internal blackout periods and/or when SRC
is in possession of material non-public information.
SRC believes that its Shares have been trading in a price range that
does not adequately reflect the value of the Shares in relation to
SRC's assets and future prospects. As a result, SRC believes that, at
appropriate times, repurchases through the Bid can enhance shareholder
value and represents an attractive investment and an appropriate use of
SRC's financial resources.
To the knowledge of SRC, no director or senior officer, no person acting
jointly or in concert with SRC and no person holding 10% or more of any
Shares of SRC currently intends to sell Shares during the course of the
Bid. However, sales by such persons through the facilities of the TSX
may occur if the personal circumstances of any such person changes or
any such person makes a decision unrelated to the Bid. The benefits to
any such person whose Shares are purchased would be the same as the
benefits available to all other holders whose Shares are purchased
under the Bid. SRC has purchased 4,944,100 Shares pursuant to a normal
course issuer bid during the preceding 12 months at an average cost of
$3.98 per Share.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be any
sale of the securities in any state or other jurisdiction in which such
offer, solicitation or sale would be unlawful.
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 Statements
Certain statements regarding SRC, including management's assessment of
future plans, may constitute forward-looking statements under
applicable securities laws and necessarily involve risk. SRC's actual
results or achievements could differ materially from those expressed
in, or implied by, the forward-looking statements. No assurance can be
given that any events anticipated by the forward-looking statements
will occur. These forward-looking statements, which are based on
management's current expectations, are made as at the date of this news
release. SRC does not undertake any obligation to publicly update or
revise any of these forward-looking statements, except as required by
applicable securities laws.
SOURCE: Sprott Resource Corp.
For further information:
Chief Financial Officer
Sprott Resource Corp.
200 Bay Street, Suite 2750
Tel: (416) 977-7333
Fax: (416) 977-9555