TORONTO, June 3, 2013 /CNW/ - Sprott Power Consulting Limited Partnership ("Sprott LP") has today filed an early warning report advising of its current and
anticipated holdings of Sprott Power Corp. (the "Issuer"). Pursuant to a transition agreement entered into between Sprott LP
and the Issuer dated February 10, 2013 (the "Transition Agreement"), Sprott LP expects to acquire ownership of up to 6,977,555 common
shares (the "Acquired Shares") of the Issuer on or prior to July 31, 2013 (the "Termination Date"). The Acquired Shares will be issued from treasury, and following the
acquisition are expected to represent up to approximately 9.28% of the
Issuer's currently outstanding common shares ("Issuer Shares").
In addition, Sprott Flow Through 2012 LP (and its manager, Sprott Asset
Management LP), Exploration Capital Partner 2000 LP (and its manager
Resource Capital Investments Corp.), Eric Sprott, Kevin Bambrough,
Peter Grosskopf, Sprott Consulting LP, Arthur Einav, Sprott Global
Resource Investments, Ltd., Sprott Asset Management USA Inc., Martin
Lim, Donald Bartlett, Hugh Campbell, Kevin Gilbride, Stephen Yuzpe and
Michael Neylan (collectively, the "Sprott Entities") may be considered joint actors with Sprott LP in connection with its
investment in the Issuer. After giving effect to the acquisition,
Sprott LP and the Sprott Entities will own, or exercise control or
direction over, an aggregate of up to 11,958,626 Issuer Shares,
warrants (the "Issuer Warrants") exercisable for an aggregate of 780,221 Issuer Shares and options
(the "Issuer Options") exercisable for an aggregate of 644,427 Issuer Shares, as of the
Termination Date. Based on the number of currently outstanding Issuer
Shares (as reported by the Issuer) and assuming the issuance of the
Acquired Shares, the exercise of the Issuer Warrants and the exercise
of the Issuer Options, Sprott LP and the Sprott Entities together will
own or exercise control or direction over up to approximately 17.47% of
the outstanding Issuer Shares.
The Acquired Shares will be issued by the Issuer in satisfaction of a
$7,326,433 payment owing to Sprott LP under the Transition Agreement.
The Transition Agreement provides that each Issued Share is valued at
the greater of $1.05 and the 20 day volume weighted average trading
price of the Issuer Shares as at the Termination Date. Sprott LP's
anticipated acquisition of up to 6,977,555 Issuer Shares assumes that
these shares will be issued at a minimum value of $1.05 each.
Sprott LP will acquire the Acquired Shares in accordance with the
Transition Agreement in consideration for the Class B units Sprott LP
holds of SP Operating Limited Partnership and SP Development Limited
Partnership. The securities described therein are held for investment
purposes. Depending on market and other conditions, Sprott LP may from
time to time in the future increase or decrease its ownership, control
or direction over such securities or other securities of the Issuer,
through market transactions, private agreements or otherwise.
The issuance of this press release is not an admission that an entity
named herein owns or controls any securities described herein or is a
joint actor with another entity named in the early warning report
referred to in this press release.
SOURCE: Sprott Power Consulting Limited Partnership
For further information:
To obtain a copy of the early warning report referred to in this press release, please contact: Glen Williams, (416) 943-4394, 200 Bay Street, Suite 2700, PO Box 27, Toronto, Ontario M5J 2J1 at Sprott LP.