TORONTO, Sept. 24 /CNW/ - Sprott Resource Corp. ("SRC") announced today
that it has completed its previously announced sale of 17,050,000 common
shares of PBS Coals Limited to holders of subscription receipts of PBS Coals
Corporation and an affiliate, which were issued on July 31, 2008. SRC has
received net proceeds after commissions of $97,507,445 from the completion of
this sale. The proceeds of this previously announced sale had been held in
escrow pending the completion of the business combination between PBS Coals
Limited and Penfold Capital Acquisition Corporation, which became effective
today (see press release dated July 31, 2008).
SRC continues to hold 27,144,938 (19.9%) of the common shares of PBS
Coals Limited. The common shares of PBS Coals Limited are listed for trading
on the Toronto Stock Exchange under the symbol "PBS".
As previously announced on August 22, 2008, SRC has signed an irrevocable
lock-up agreement to tender all of its remaining common shares of PBS Coals
Limited into the offer by a subsidiary of Severstal Resources to purchase all
of the common shares of PBS Coals Limited (the "Offer") at a price of $8.30.
The Offer, which is subject to certain conditions, is open until October 10,
2008, unless withdrawn or extended in accordance with its terms.
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 "expects", "anticipates",
"should", "believes", "plans", and similar expressions. These statements
necessarily involve risk, including without limitation, risks associated with
the Offer, including the possibility that the conditions relating to the Offer
may not satisfied or that all required regulatory approvals may not obtained.
Actual results and future events 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 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
For further information:
For further information: Kevin Bambrough, President and Chief Executive
Officer, Tel: (416) 977-7333, Fax: (416) 977-9555, E-mail: