Sprott completes acquisition of Toscana Companies
10 Jul, 2012, 07:00 ET
TORONTO, July 10, 2012 /CNW/ - Sprott Inc. (TSX: SII) ("Sprott") today announced it has completed its acquisition of Toscana Capital Corporation and Toscana Energy Corporation (collectively, the "Toscana Companies"). As at the date hereof, the Toscana Companies' managed entities have aggregate assets of approximately $160 million.
"We are pleased to welcome Toscana to our organization," said Peter Grosskopf, CEO of Sprott. "Toscana brings us a team focused on yield products in the energy sector, enhanced origination and technical skills in the energy industry, and a presence in the Calgary marketplace."
"We are excited to join the Sprott Group of Companies," said Joseph Durante, CEO of the Toscana Companies. "The two organizations share a similar outlook and possess complementary skillsets that will allow us to build a stronger Calgary presence."
About the Toscana Companies
Toscana Capital Corporation manages Toscana Financial Income Trust ("TFIT"), a private mutual fund trust established in June 2006 focused on providing mezzanine debt financing to mid-sized private and public oil & gas companies. TFIT has a current capitalization of approximately $54 million.
Toscana Energy Corporation manages Toscana Resource Corporation ("TRC"), a mutual fund corporation established in April 2010 focused on investing in medium and long-term oil & gas assets, unitized production interests and royalties. TRC currently has aggregate assets that have a value of approximately $76 million.
In addition, Toscana Energy Corporation is a technical advisor to and co-manager of Maple Leaf 2011 Energy Income Fund LP and Maple Leaf 2011 Energy Income Fund LP (collectively, "MLEI"), a flow-through limited partnership focused on investing in non-operated, direct working interests by participating in oil & gas development projects (drilling programs). MLEI is co-managed by Toscana Energy Corporation and a third party manager. MLEI currently has aggregate assets that have a value of approximately $34 million.
About Sprott Inc.
Sprott Inc. is a leading independent alternative asset manager dedicated to achieving superior returns for its clients over the long term. The Company currently operates through four business units: Sprott Asset Management LP, Sprott Private Wealth LP, Sprott Consulting LP, and Sprott U.S. Holdings Inc. Sprott Asset Management is the investment manager of the Sprott family of mutual funds and hedge funds and discretionary managed accounts; Sprott Private Wealth provides wealth management services to high net worth individuals; and Sprott Consulting provides management, administrative and consulting services to other companies, including Sprott Resource Corp. (TSX: SCP), Sprott Resource Lending Corp. (TSX: SIL) (NYSE AMEX: SILU) and Sprott Power Corp. (TSX: SPZ). Sprott U.S. Holdings Inc. includes Sprott Asset Management USA Inc., Resource Capital Investments Inc. and Global Resource Investments Ltd. Sprott Inc. is headquartered in Toronto, Canada, and its common shares are listed on the Toronto Stock Exchange under the symbol "SII". For more information on Sprott Inc., please visit www.sprottinc.com.
This release contains "forward-looking statements" which reflect the current expectations of Sprott Inc. These statements reflect management's current beliefs with respect to future events and are based on information currently available to management. Forward-looking statements in this press release include, but are not limited to, statements with respect to the anticipated benefits of the acquisition of the Toscana Companies. Forward-looking statements involve significant known and unknown risks, uncertainties and assumptions, including with respect to the timing and receipt of all applicable regulatory approvals. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements including, without limitation, those listed under the heading "Risk Factors" in Sprott's annual information form dated March 27, 2012 as well as the potential difficulties that may be encountered in integrating the businesses. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking statements contained in this release. Although the forward-looking statements contained in this release are based upon what Sprott believes to be reasonable assumptions, management cannot assure investors that actual results, performance or achievements will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this release and Sprott does not assume any obligation to update or revise them to reflect new events or circumstances, except as required by law.
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