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 email@example.com, 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
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.
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