Sprott Molybdenum Participation Corporation announces sale of its position in physical molybdenum



    
    /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION
    IN THE UNITED STATES/
    

    TORONTO, Aug. 14 /CNW/ - (TSX: MLY, MLY.WT) - Sprott Molybdenum
Participation Corporation (the "Corporation") announces that on August 13,
2008, it entered into a contract to sell its holding of approximately 600,000
lbs of physical molybdenum, in form of molybdenum oxide, at an average market
price over the six-month period from July to December 2008. More specifically,
physical molybdenum will be priced over six separate quotation periods in
increments of approximately 100,000 lbs for the specified months.
    The proceeds will be used to repurchase and cancel the Corporation's
common shares under the normal course issuer bid announced on August 12, 2008
and/or to invest in companies that explore for, mine and/or otherwise transact
in molybdenum. "We continue to be strong believers in the molybdenum story and
are bullish on the price of the metal. The sale is prompted by our view that
if the price of molybdenum moves up, upside benefit should be greater for
molybdenum equities than for physical molybdenum. We also feel that the funds
could provide a greater return to shareholders through the buyback and
cancellation of the Corporation's shares", commented Eric Sprott, President
and CEO.

    Caution Regarding Forward-Looking Statements

    This release contains forward-looking statements which reflect
management's current beliefs regarding the Corporation's future growth, supply
and demand for securities of private and public companies that explore for,
mine and/or process molybdenum and all commercial forms of molybdenum
(collectively, the "Molybdenum Assets"), any appreciation in the value of the
Molybdenum Assets, results of operations and future general economic,
political and relevant market factors, such as interest rates, foreign
exchange rates, equity and capital markets, and the general business
environment, in each case assuming no changes to applicable tax or other laws
or government regulation. These beliefs are based on information currently
available to management. Expectations and projections about future events are
inherently subject to, among other things, risks and uncertainties, some of
which may be unforeseeable. Accordingly, assumptions concerning future
economic and other factors may prove to be incorrect at a future date.
Forward-looking statements are not guarantees of future performance, and
actual events could differ materially from those expressed or implied in any
forward-looking statements made by the Corporation. Any number of important
factors could contribute to these digressions including, but not limited to,
general economic, political and market factors in North America and
internationally, interest and foreign exchange rates, global equity and
capital markets, business competition, technological change, changes in
government relations, unexpected judicial or regulatory proceedings and
catastrophic events. These forward-looking statements are made as of the date
of this release and Corporation does not assume any obligation to update or
revise them to reflect new events or circumstances.

    About Sprott Molybdenum Participation Corporation

    The Corporation is an investment holding company created to invest in
Molybdenum Assets. The primary investment objective of the Corporation is to
achieve capital appreciation by investing in securities of private and public
companies that explore for, mine and/or process molybdenum and by investing
in, holding, selling and otherwise transacting in all commercial forms of
molybdenum. It is not an investment strategy of the Corporation to actively
speculate with regards to short-term changes in molybdenum prices. The
Corporation's investment mandate will provide investors with several benefits.
It will provide investors with the opportunity to invest in commercial forms
of molybdenum, which is currently unavailable through an exchange. In
addition, it will provide investors with a diversified portfolio of securities
of private and public companies that explore for, mine and/or process
molybdenum.




For further information:

For further information: Investor Services at 1-888-362-7172

Organization Profile

SPROTT MOLYBDENUM PARTICIPATION CORP.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890