/NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR DISSEMINATION IN THE
TORONTO, May 21, 2014 /CNW/ - Sprott Resource Corp. ("SRC") (TSX:SCP)
and Long Run Exploration Ltd. ("Long Run") (TSX:LRE) today announced
the completion of a secondary offering of 12,654,635 common shares of
Long Run ("Common Shares") by SRC at a price of $5.35 per Common Share,
for gross proceeds of $67,702,297 to SRC (the "Offering"). Long Run
will not receive any proceeds from the Offering.
The previously announced Offering was completed on a bought deal basis
by an underwriting syndicate co-led by National Bank Financial Inc. and
Cormark Securities Inc., and including GMP Securities L.P., TD
Securities Inc., Canaccord Genuity Corp., Clarus Securities Inc. and
Scotia Capital Inc.
Effective immediately following the Offering, SRC exercised its right to
convert all of its non-voting convertible shares of Long Run into
15,512,858 Common Shares (the "Conversion"). After giving effect to
the Offering and the Conversion, SRC's ownership interest in Long Run
will be approximately 18.3%, comprised of a total of 23,000,000 Common
Shares. Following the conversion of the outstanding 23,500,000
subscription receipts of Long Run ("Subscription Receipts") into Common
Shares, which Long Run currently anticipates will occur on May 30,
2014, SRC's ownership interest in Long Run will be approximately
15.4%. Mr. Stephen Yuzpe, President and CEO of SRC, will stand for
re-election to Long Run's board of directors at Long Run's upcoming
annual and special shareholders meeting.
This news release does not constitute an offer to sell or a solicitation
of an offer to buy Common Shares in any jurisdiction. The Common Shares
offered in the Offering have not been registered under the United
States Securities Act of 1933 (the "1933 Act"), as amended, and may not be offered or sold within the
United States or to, or for the account or benefit of, "U.S. persons"
(as defined in Regulation S under the 1933 Act) unless registered under
the 1933 Act and applicable state securities laws or under an exemption
of such registration.
This news release contains forward-looking statements, including but not
limited to the timing of the Conversion, the timing of the conversion
of Subscription Receipts into Common Shares, SRC's percentage ownership
interest in Long Run and a certain member of SRC standing for
re-election at Long Run's upcoming annual and special shareholders
meeting. These forward-looking statements are not historical facts but
reflect SRC's and, where applicable, Long Run's current expectations
concerning future plans, actions and results. These statements are
subject to a number of risks and uncertainties that could cause actual
plans, actions and results to differ materially from current
expectations including, but not limited to, changes in economic and
market conditions, and other risks and uncertainties discussed in SRC's
and Long Run's materials filed with the Canadian securities regulatory
authorities from time to time and as also set forth in the final
prospectus of Long Run concerning the Offering. Readers are cautioned
not to place undue reliance on these forward-looking statements, which
reflect SRC's and, where applicable, Long Run's expectations only as of
the date of this news release. SRC and Long Run disclaim any intention
or obligation to update or revise these forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by law.
About Sprott Resource Corp.
SRC is a Canadian-based company, the primary purpose of which is to
invest in natural resource companies. 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 LP ("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.
About Long Run
Long Run is a Calgary-based intermediate oil and natural gas company
focused on light-oil development and exploration in western Canada. For
further information about Long Run, visit the Company's website at www.longrunexploration.com.
SOURCE: Sprott Resource Corp.
For further information:
Sprott Resource Corp.
Director of Communications
T: (416) 943-4394
Long Run Exploration Ltd.
Vice President, Business Development
T: (403) 261-8302