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TORONTO, June 17 /CNW/ - (TSX:SCP) - Sprott Resource Corp. ("SRC")
announced today that one of its investments, PBS Coals Corporation ("PBS
Coals"), has entered into a letter of intent with Penfold Capital Acquistion
Corporation (TSX-V:PNA.P) ("Penfold") to enter into a business combination
with Penfold. SRC currently has a 31.6% interest in PBS Group (defined below).
"With the global coal market continuing to tighten, the investment demand
for eastern USA coal producers remains strong," said Kevin Bambrough,
President and CEO of SRC. "We expect to further increase SRC's shareholder
value through the public listing of PBS Coals and the elevation of its profile
in the public marketplace."
PBS is a private British Columbia Corporation which owns 85% of the
equity of the PBS Coals Group of Companies, a privately held group of
companies engaged in the mining, processing and sale of metallurgical and
thermal coal from their properties in Central Pennsylvania (the "PBS Group").
The PBS Group consists of PBS Coals, Inc. and Rox Coal, Inc., two Delaware
corporations, and their subsidiaries and holding companies. The PBS Group
currently produces approximately 3 million clean tons of bituminous coal a
year from both its underground and surface operations. The PBS Group has
initiated a mine expansion program to increase production to 5 million clean
tons per year over the next two fiscal years (consisting primarily of
metallurgical coal) and to complete construction of its Cambria processing
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. 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