TORONTO, March 4 /CNW/ - (TSX: SCP) - Sprott Resource Corp. ("SRC")
announced today that it has launched One Earth Farms Corp. ("One Earth
Farms"), a large scale, fully-integrated corporate farming entity, which
intends to have operations on world class First Nations' farmland in the
Prairie Provinces. SRC will invest $27.5 million in One Earth Farms to
establish operations, fund working capital and support its initial growth.
"We believe that the opportunities associated with this new venture are
unprecedented in the agricultural industry," said Kevin Bambrough, President
and CEO of SRC. "We intend to build a long-term profitable agricultural
business in partnership with the First Nations, which will improve the
management and environmental sustainability of First Nations' farmland as well
as benefit their peoples through increased revenue and job opportunities. We
have assembled an exceptional team at One Earth Farms, which we believe
provides the industry experience and operational skill necessary to build One
About One Earth Farms
Management has designed a program to begin farming operations in a hub
and spoke system designed to plant crops and ranch lands in annual increments,
beginning with an initial minimum target of 50,000 acres in the first year of
operations. One Earth Farms' professional management team, its strong
capitalization and its access to large tracts of world class First Nations'
farmland, positions One Earth Farms to become the largest, most efficient,
operating farm in Canada.
Management believes that the timing for this venture is opportune. Global
trends continue to impact food supplies, as arable land continues to decline,
fresh water remains in short supply and various regions of the world are
experiencing severe, recurring droughts. In addition, the global credit crisis
has impacted the financing available to farmers and will negatively impact
crop production in the short term. These factors, combined with a global
population that continues to rise, are creating food security issues and in
turn fueling substantial farming investment demand globally.
One Earth Farms intends to initiate job training programs for First
Nations persons, which will help train the next generation of farmers, provide
One Earth Farms with a pool of qualified employees for the future and further
strengthen the relationship between One Earth Farms and the First Nations.
Appointment of Management of One Earth Farms
Larry Ruud will serve as President and CEO of One Earth Farms. Mr. Ruud
brings over fifteen years experience as an active management consultant for
farmers in areas such as commodity price management, capital investment
decisions, process improvement, management and ownership transition and in
developing farming agreements. In 2000, Mr. Ruud merged his company into and
became a partner at Meyers Norris Penny, where he has led the firm's Alberta
Agriculture Consulting Team. Mr. Ruud is a director of Viterra Inc., which is
the largest grain company in Canada, and a member of its Audit Committee. Mr.
Ruud holds a M.Sc. in Agriculture Economics from the University of Alberta.
"With large tracts of high quality land, Western Canada provides
significant opportunity to develop a large, efficient and profitably managed
corporate farm. We intend to build an industry leading business based on
environmentally sustainable practices, respect for the First Nations peoples
and a culture of excellence which extends across the One Earth Farms
organization," said Mr. Ruud.
Blaine Favel, President and CEO of One Earth Resources Corp., has been
appointed director of One Earth Farms and Chairman of One Earth Farms GP
Corp., the manager of the limited partnership through which First Nations'
land will be leased and farmed. Mr. Favel brings over eighteen years of
experience in First Nations business development as an advisor, entrepreneur
and Chief. Mr. Favel is a former Grand Chief of the Federation of Saskatchewan
Indian Nations where he pioneered two national firsts; the establishment of
the First Nations Bank of Canada and the Saskatchewan Indian Gaming Authority.
Mr. Favel holds an LLB from Queens University and an MBA from Harvard Business
"One Earth Farms has received enthusiastic support from First Nations as
our business model generates significant value for First Nations through the
creation of employment for their peoples, best in class land management
practices, and the development of agri-industry joint-venture initiatives,"
said Blaine Favel, Director of One Earth Farms.
Fred Siemens will serve as COO of One Earth Farms. Mr. Siemens has been
an active participant in a wide variety of roles in the agri-business
community for more than 20 years, having held the positions of Supervisor of
Grain Futures Trading for Canada on behalf of the Canadian Grain Commission
and President and CEO of the Winnipeg Commodity Exchange. Mr. Siemens has also
been a part owner of an Alberta-based commodity brokerage specializing in
agricultural risk management and has worked at the firm of Meyers Norris
Penny. He has served on the boards of the Canada Grains Council, the Manitoba
Institute of Agrologists, the Flax Council and the Winnipeg Chamber of
Commerce Agricultural Committee.
Eric Sprott will act as Chairman of One Earth Farms. Mr. Sprott has over
35 years of experience in the investment industry and currently acts as
Chairman of SRC and President and CEO of Sprott Inc. He is also the portfolio
manager at Sprott Asset Management Inc. for Sprott Hedge Fund L.P., Sprott
Hedge Fund L.P. II, Sprott Offshore Fund, Sprott Canadian Equity Fund, Sprott
Energy Fund, Sprott Bull/Bear RSP Fund and the Sprott Managed Accounts.
Additional Financing for One Earth Farms
One Earth Farms intends to initiate strategic industry partnerships,
either through preferred supply relationships or preferred long-term sales
agreements for its production. As well, One Earth Farms has engaged Cormark
Securities on a financial advisory basis to explore the raising of third party
capital for One Earth Farms from industry sources, credit providers and other
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" or "forward-looking information" 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. Forward-looking statements, which are based on management's
current expectations and assumptions, involve a number of risks and
uncertainties. Actual results or achievements could differ materially from
those expressed in, or implied by, these forward-looking statements. Factors
that could cause actual results to differ from those expressed in, or implied
by, these forward-looking statements include, without limitation, risks
associated with commodity price fluctuations, regulatory risks, environmental
risks, operational risks and other risks associated with a large scale farming
operation. No assurance can be given that any events anticipated by these
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 laws.
For further information:
For further information: Kevin Bambrough, President and CEO, Tel: (416)
977-7333, Fax: (416) 977-9555