TORONTO, Dec. 15 /CNW/ - (TSX:SCP) - Sprott Resource Corp. ("SRC")
announced today that it has acquired during this quarter 40,475 ounces of gold
bullion and 852,478 ounces of silver bullion. The balance of SRC's working
capital is in short-term government of Canada treasury bills.
"We intend to continue to look for attractive investment opportunities to
allocate our capital while working on building accretive businesses," said
Kevin Bambrough, President and CEO of SRC. "In the interim, we feel it is
prudent to allocate a portion of our working capital into gold and silver
bullion. We may allocate a larger portion into gold and silver, or other
physical commodities, in the future depending on market conditions."
Kevin Bambrough continued: "Current yields on short-term government debt
are approaching, and in certain cases have reached, zero percent. This is
occurring while governments are assuming liabilities and issuing debt at an
unprecedented rate. We believe this situation is not sustainable over the
longer-term and that global creditors will begin to hoard hard assets, in
particular gold and silver, rather than purchase government debt that offers
little nominal yield and is subject to a loss in real value as currencies are
debased."
About Sprott Resource Corp.
SRC is a Canadian based company, the primary purpose of which is to
invest, directly and indirectly, 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 Asset Management
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.
Forward Looking Statements
Certain statements contained herein may constitute "forward-looking
statements" under applicable securities laws. Some of the forward-looking
statements may be identified by words such as "intends", "expects",
"anticipates", "should", "believes", "plans", and similar expressions. These
statements are based on current estimates, factors and assumptions, including
expectations regarding the SRC's future strategy and business and the
execution of its existing plans. These statements involve known and unknown
risk. No assurance can be given that any events anticipated by the
forward-looking statements will occur. Actual results and future events could
differ materially from those expressed in, or implied by, the forward-looking
statements. As a result, readers are cautioned not to place undue reliance on
these forward-looking statements. These forward-looking statements 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.
For further information: Kevin Bambrough, President and CEO, Tel: (416)
977-7333, Fax: (416) 977-9555
