TORONTO, Dec. 19, 2012 /CNW/ - (TSX:SCP) - Sprott Resource Corp. ("SRC" or the "Company") announced today that it
has increased the maximum price at which the Company will repurchase
and cancel common shares as set out in its Automatic Repurchase Plan
(the "Plan") to $4.60 per share. The Plan, previously put in place with
a broker on September 4, 2012, was established in connection with the
Company's Normal Course Issuer Bid (the "Bid"), which commenced on
September 7, 2012, in order to facilitate purchases of SRC's common
shares under the Bid. The Plan permits SRC to provide standing
instructions to its broker as to how the Company's common shares are to
be repurchased, including during internal blackout periods and/or when
the Company is in possession of material non-public information. SRC
did not possess material non-public information about itself or its
securities at the time it increased the maximum price.
The Company believes that it is in the best interest of its shareholders
to purchase shares for cancellation when management believes they are
trading at a discount. SRC is of the view that, at appropriate times,
repurchases through the Bid can enhance shareholder value and
represents an attractive investment and an appropriate use of the
Company's financial resources.
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 Sprott
Resource Partnership (SRP), a partnership between SRC and Sprott
Resource Consulting Limited Partnership, an affiliate of SCLP which is
the managing partner of SRP.
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.
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