TORONTO, Jan. 31, 2012 /CNW/ - (TSX: SCP) - Sprott Resource Corp. ("SRC") announced that its subsidiary, One
Earth Farms Corp. ("One Earth Farms"), held an investor conference call
at 4:00 p.m. on January 31, 2012 (the "Conference Call"). The
Conference Call was hosted by Stephen Yuzpe, CFO of SRC and Chairman of
the Board of Directors of One Earth Farms, and Larry Ruud, President
and CEO of One Earth Farms. The replay of the conference call can be
accessed by phone until April 27, 2012 by dialing 1-866-551-4520 or
1-212-401-6750 and entering pass code 279293 followed by the number
sign. The replay will also be available on the SRC website.
Mr. Yuzpe reported that One Earth Farms is not expected to have
significant external financing needs in 2012. However, it is
anticipated that external financing will be required for 2013, which
will be a function of the company's financial performance in 2012 and
growth expectations of both the cattle and crop divisions of One Earth
Farms. One Earth Farms has made very good progress towards its vision
of becoming an integrated business with the strategic opportunity to
transform Canadian agriculture by reversing the current model of buying
retail and selling wholesale. In line with this vision, management of
One Earth Farms also sees the potential for additional shareholder
value creation through the development of branded food products grown
by its cattle and crop divisions. As such, One Earth Farms' management
is actively seeking marketing and branding experts and partnerships to
assist with researching and planning this project.
Mr. Ruud provided an update with respect to One Earth Farms' continued
expansion in Alberta and Saskatchewan in 2011, further mitigating
weather and commodity risks. In addition to an expanded geographical
base, One Earth Farms has achieved strong growth in its base cattle
herd, an area where management sees synergies with the crop division.
One Earth Farms has developed natural protocols to raise cattle that
are hormone and antibiotic free and will begin testing the premiums for
this beef in the market in 2012.
An update with respect to One Earth Farms' crop yields in 2011 was also
provided by Mr. Ruud, who noted that overall yields were unfortunately
below plan. While the yields were not far off the long term regional
averages in Alberta, the yields were below budget in Saskatchewan,
partly as a result of bad weather and continued moisture in the area.
Crop yields were also impacted by the acquisition and integration of
new land and labour.
One Earth Farms' objectives for 2012 include, amongst others, improving
operational efficiency while achieving moderate growth. Management is
currently targeting an increase to approximately 200,000 acres for crop
and cattle operations, with a target of 8,300 cows and 4,300 yearlings
and bulls in 2012.
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.
About One Earth Farms Corp.
One Earth Farms is a large corporate grain and cattle farm primarily
operating in partnership with the First Nations on First Nations
farmland in the Prairie Provinces in Canada.
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", "intends", "anticipates",
"estimates", "should", "believes", "plans", "outlook", "objective" and
similar expressions. Forward-looking statements, which are based on
management's current expectations and assumptions, including financing
requirements, marketing and branding strategies, cattle program
developments and crop yields involve a number of risks and uncertainties. Actual results, benefits or achievements
could differ materially from those expressed in, or implied by, these
forward-looking statements. Factors that could cause actual results,
benefits, performance or achievements to differ from those expressed
in, or implied by, these forward-looking statements include, without
limitation, those listed under the heading "Risks Relating to the
Agricultural Segment - One Earth Farms" in SRC's Annual Information
Form dated March 28, 2011, 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.
SOURCE Sprott Resource Corp.
For further information:
Chief Financial Officer
Tel: (416) 977-7333
Fax: (416) 977-9555