TORONTO, July 31 /CNW/ - (TSX: SCP) - Sprott Resource Corp. ("SRC") today
announced that it has sold into escrow 17,050,000 shares of PBS Coals
Corporation ("PBS"), as part of a treasury and secondary offering of
35,716,000 Subscription Receipts (each a "Security") closed by PBS at a price
of $6.00 per Security. SRC previously announced its intention to sell shares
of PBS as part of the offering (see press release dated June 27, 2008). SRC
continues to own 27,140,000 shares of PBS.
Each Security effectively represents a right to receive a common share of
PBS Coals Limited, the company to be formed from the business combination
between PBS and Penfold Capital Acquisition Corporation ("Penfold"), upon the
occurrence of release conditions including TSX approval and satisfaction of
the conditions to the PBS and Penfold business combination. The aggregate
proceeds from the offering will be held in escrow pending the completion of
the business combination of PBS and Penfold.
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. These statements necessarily involve risk, including without
limitation, risks associating with the escrow release conditions not being
satisfied. 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: please contact: Kevin Bambrough, President and
Chief Executive Officer, Tel: (416) 977-7333, Fax: (416) 977-9555, E-mail: