TORONTO, Jan. 28, 2013 /CNW/ - Sprott Resource Corp. (TSX: SCP) - Sprott
Resource Corp. ("SRC") announced today that, through Sprott Resource Partnership ("SRP"), it holds 9,444,815 common shares of Virginia Energy Resources Inc.
("Virginia Energy"), which based on information contained in documents publically filed
by Virginia Energy, represents approximately 16.5% of the total issued
and outstanding common shares of Virginia Energy (the "Shares").
Pursuant to Virginia Energy's previously announced private placement
(the "Placement"), which closed on January 25, 2013, SRP acquired ownership of
2,857,143 Shares at a purchase price of $0.42 per Share pursuant to a
subscription agreement dated January 14, 2013.
SRP acquired the Shares for investment purposes. SRP may purchase or
sell securities of Virginia Energy in the future on the open market, in
private transactions or otherwise, depending on market conditions and
other factors material to the investment decisions of SRP.
About Sprott Resource Corp.
SRC is a Canadian-based company, the primary purpose of which is to
invest and operate 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 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. SRC invests and operates through SRP, a
partnership between SRC and Sprott Resource Consulting Limited
Partnership, an affiliate of SCLP which is the managing partner of SRP.
Forward-looking Information and Statements
This news release contains certain forward-looking information and
statements within the meaning of applicable securities laws. The use of
any of the words "expect", "intends", "anticipate", "continue",
"estimate", "may", "will", "project", "should", "believe", "plans" and
similar expressions are intended to identify forward-looking
information and statements. In particular, but without limiting the
forgoing, this news release contains forward-looking information and
statements pertaining to SRC's and SRP's future intentions regarding
the purchase or sale of securities of Virginia Energy. Forward-looking
information or statements are based on a number of expectations or
assumptions which have been used to develop such information and
statements but which may prove to be incorrect, including, but not
limited to, expectations or assumptions regarding market conditions and
other factors material to the investment decisions of SRC and SRP.
Although SRC believes the expectations and assumptions reflected in
such forward-looking information and statements are reasonable, undue
reliance should not be placed on forward-looking information and
statements because SRC can give no assurance that such expectations and
assumptions will prove to be correct. The forward-looking information
and statements included in this new release are not guarantees of
future performance and should not be unduly relied upon. Such
information and statements, including the assumptions made in respect
thereof, involve known and unknown risks, uncertainties and other
factors, which may cause actual results or events to differ materially
from those anticipated in such forward-looking information or
statements, including, without limitation, those listed under the
heading "Risk Factors" in SRC's annual information form dated March 27,
2012. Should one or more of these risks or uncertainties materialize,
or should assumptions underlying the forward-looking information and
statements prove incorrect, actual results, performance or achievements
could vary materially from those expressed or implied by the
forward-looking information and statements contained in this news
release. The forward-looking information and statements contained in
this news release speak only as of the date of this news release, and
SRC does not assume any obligation to publicly update or revise any of
the included forward-looking information or statements, whether as a
result of new information, future events or otherwise, except as may be
expressly required by applicable securities laws.
SOURCE: Sprott Resource Corp.
For further information:
Chief Financial Officer
Sprott Resource Corp.
200 Bay Street, Suite 2750
Tel: (416) 977-7333
Fax: (416) 977-9555