/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
TORONTO, April 4 /CNW/ - Sprott Molybdenum Participation Corporation (the
"Corporation") is pleased to announce that it and a syndicate of agents led by
GMP Securities L.P. and including Cormark Securities Inc., Canaccord Capital
Corporation, Fort House Inc., TD Securities Inc. and Dundee Securities
Corporation (the "Agents") have agreed to pricing terms of the Corporation's
initial public offering (the "Offering"). A total of 36 million Units at a
price of $5.00 per Unit for gross proceeds of $180,000,000 will be offered for
sale. Each Unit shall consist of one common share in the capital of the
Corporation and one-half of one common share purchase warrant (each whole
warrant, a "Warrant"). Each Warrant entitles the holder to acquire, subject to
adjustment in certain circumstances, one common share of the Corporation at a
price of $7.50 at any time on or prior to the close of business on the date
that is 24 months from the closing of the Offering. The closing of the
Offering is scheduled to occur on or about April 16, 2007.
The Agents will also be granted an over-allotment option to purchase up
to an additional 5% of the aggregate number of Units sold at the closing of
the Offering, exercisable at any time prior to 5:00 p.m. EDT on the 30th day
following closing of the Offering.
Sprott Asset Management Inc. has acquired 3,976,000 common shares of the
Corporation on a private placement basis at a price of $4.90 per share for
aggregate proceeds to the Corporation of approximately $19,482,400, which
amount, upon closing of the Offering, will represent approximately 9.94
percent of the issued and outstanding shares of the Corporation.
The Corporation will use substantially all of the net proceeds of the
Offering to acquire securities of private and public companies that explore
for, mine and/or process molybdenum and to acquire physical molybdenum.
The final prospectus and the Offering of the Units are subject to
regulatory approvals including certain securities commissions in Canada and
the Toronto Stock Exchange.
No securities regulatory authority has either approved or disapproved of
the contents of this news release. The securities being offered have not been
and will not be offered or sold in the United States or to, or for the account
or benefit of, a "U.S. person", as such term is defined in Regulation S under
the United States Securities Act of 1933, as amended. This press release is
for information purposes only and does not constitute an offer to sell or a
solicitation of an offer to buy any of these securities in the United States.
Certain statements in this release are "forward-looking statements" which
reflect Sprott Asset Management Inc.'s (the "Manager"), the manager of the
Corporation, expectations regarding the Corporation's future growth, supply
and demand for the molybdenum assets, any appreciation in the value of the
molybdenum assets, results of operations, performance and business prospects
and opportunities. Such forward-looking statements reflect management's
current beliefs and are based on information currently available to
management. Forward-looking statements involve significant risks and
uncertainties. A number of factors could cause actual results to differ
materially from the results discussed in the forward-looking statements. Some
of these risks, uncertainties and other factors are described in the
Corporation's prospectus under the heading "Risk Factors". Although the
forward-looking statements contained in this release are based upon what the
Corporation and the Manager believe to be reasonable assumptions, neither the
Corporation nor the Manager can assure investors that actual results will be
consistent with these forward-looking statements. These forward-looking
statements are made as of the date of this release, and neither the
Corporation nor the Manager assumes any obligation to update or revise them to
reflect new events or circumstances.
For further information:
For further information: please contact Investor Services at