/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
TORONTO, June 6 /CNW/ - (TSX: MLY, MLY.WT) - Sprott Molybdenum
Participation Corporation (the "Corporation") is pleased to announce that
yesterday it exercised the option to acquire 15,997,760 common shares of Inca
Pacific Resources Inc. ("Inca Shares") from RAB Special Situations (Master)
Fund Limited ("RAB") pursuant to the option agreement previously announced on
May 28, 2007. Upon exercise of the option (and including the cost of acquiring
the option), the Corporation effectively paid an aggregate purchase price for
each Inca Share of $2.00 CAD, 50% in cash and 50% in common shares of the
Corporation (the "Common Shares"). A total of 2,712,312 Common Shares were
issued to RAB at an effective price of $5.8982 per Common Share (being the
20-day volume weighted average price as at June 5, 2007).
Following the exercise of the option, the Corporation owns 19,317,593
Inca Shares representing approximately 53% of the Inca Shares outstanding.
Inca Shares acquired by the Corporation upon the exercise of the option were
acquired for investment purposes and not with a view of exercising control
over Inca Pacific Resources Inc. or being actively involved in its management.
Depending on market and other conditions, the Corporation may from time to
time in the future increase or decrease its ownership, control or direction
over the Inca Shares or other securities of Inca, through market transactions,
private agreements or otherwise.
The Corporation has also entered into a voting trust agreement with Inca
pursuant to which the Corporation has agreed to vote any Inca Shares it holds
in excess of 20% of the outstanding Inca Shares in favour of matters
management brings before the shareholders. The agreement has a term of one
year and is renewable for successive one year terms.
About Sprott Molybdenum Participation Corporation
The Corporation is an investment holding company created to invest in
molybdenum assets. The primary investment objective of the Corporation is to
achieve capital appreciation by investing in securities of private and public
companies that explore for, mine and/or process molybdenum and by investing
in, holding, selling and otherwise transacting in all commercial forms of
molybdenum. It is not an investment strategy of the Corporation to actively
speculate with regards to short-term changes in molybdenum prices. The
Corporation's investment mandate will provide investors with several benefits.
It will provide investors with the opportunity to invest in commercial forms
of molybdenum, which is currently unavailable through an exchange. In
addition, it will provide investors with a diversified portfolio of securities
of private and public companies that explore for, mine and/or process
No securities regulatory authority has either approved or disapproved of
the contents of this news release. The securities being offered have not been
and will not be offered or sold in the United States or to, or for the account
or benefit of, a "U.S. person", as such term is defined in Regulation S under
the United States Securities Act of 1933, as amended. This press release is
for information purposes only and does not constitute an offer to sell or a
solicitation of an offer to buy any of these securities in the United States.
For further information:
For further information: please contact Investor Services at