TORONTO, Aug. 19 /CNW/ - (TSX:SCP) - Sprott Resource Corp. ("SRC") today
announced that its subsidiary, which indirectly holds SRC's interest in the
Mantaro Phosphate Project ("Holdco"), has amalgamated with Stonegate Minerals
Ltd. SRC previously announced its intention to amalgamate Holdco with
Stonegate (see press release dated July 15, 2008). The amalgamated company has
been named Stonegate Agricom Ltd. ("Stonegate Agricom").
SRC owns approximately 79 percent of the outstanding shares of Stonegate
Agricom, with the balance owned by former Stonegate shareholders and
participants in a private placement that was completed by Stonegate Agricom
immediately following the amalgamation. Stonegate Agricom has approximately
$7.4 million in working capital, all of which has been provided by Stonegate
and the participants in the private placement.
The key principals of Stonegate, Ian McDonald and Kerry Knoll, will serve
as directors of Stonegate Agricom. SRC has signed a voting agreement with
Stonegate Agricom, under which it has agreed to vote its shares for a period
of three years in favour of each nominee to the board of directors of
Stonegate Agricom proposed by management of Stonegate Agricom, subject to SRC
having one representative on the board of directors and certain other
Mark Ashcroft will serve as President and CEO of Stonegate Agricom. Mr.
Ashcroft graduated from Laurentian University with a Bachelor of Engineering
(Mining) and holds a Master's degree in Finance from the ISMA Centre at the
University of Reading. Mr. Ashcroft's mining experience was gained in North
and South America and Australia. Following completion of his Master's degree
he has advised on, and arranged, debt and equity financing for a wide range of
global mining projects. Mr. Ashcroft is a Professional Engineer in the
Province of Ontario.
William Jupp will serve as Chief Financial Officer of Stonegate Agricom.
Mr. Jupp is a Chartered Accountant with over 25 years of financial and
management experience with publicly-traded companies in Canada and the United
States. During his career, he has worked with public companies in real estate,
mining, and oil and gas. From 1995 to 2006, he was with Trizec Canada Inc.
(and its predecessor corporations) where he served as Director, Financial
Reporting and Assistant Secretary of the Company (until acquired by Brookfield
Properties Corporation). From 2007 until 2008, he worked with Brookfield's
management to integrate the operations of Trizec Canada. Mr. Jupp is a member
of the Ontario Institute of Chartered Accoutants and the Alberta Institute of
Chartered Accountants. In addition, he is a Certified Public Accountant
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 regarding SRC, including management's assessment of
future plans, may constitute forward-looking statements under applicable
securities laws and necessarily involve risk, including without limitation,
risks associated with mineral exploration projects. SRC's actual results or
achievements could differ materially from those expressed in, or implied by,
the forward-looking statements. No assurance can be given that any events
anticipated by the forward-looking statements will occur. These
forward-looking statements, which are based on management's current
expectations, 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:
For further information: Kevin Bambrough, President and CEO, Tel: (416)
977-7333, Fax: (416) 977-9555