Sprott Molybdenum Participation Corporation Closes Initial Public Offering


    TORONTO, April 16 /CNW/ - Sprott Molybdenum Participation Corporation
(the "Corporation") is pleased to announce the closing of its initial public
offering. An aggregate of 37,800,000 units ("Units") (including Units issuable
on the exercise of the over-allotment option) were sold at $5.00 per Unit, for
aggregate gross proceeds of $189,000,000. Each Unit consists of one common
share in the capital of the Corporation and one-half of one common share
purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the
holder to acquire, subject to adjustment in certain circumstances, one common
share of the Corporation at a price of $7.50 until April 16, 2009. The Common
Shares and Warrants are listed on the Toronto Stock Exchange under the symbol
"MLY" and "MLY.WT", respectively.
    The syndicate of agents was led by GMP Securities L.P. and included
Canaccord Capital Corporation, Cormark Securities Inc., Fort House Inc., TD
Securities Inc. and Dundee Securities Corporation.
    The Corporation and Sprott Asset Management Inc. ("Sprott Asset") have
entered into a management services agreement pursuant to which Sprott Asset
has agreed to manage the Corporation's activities, including arranging for,
and completing for and on behalf of the Corporation any purchase and sale of
molybdenum assets. The Corporation will use substantially all of the net
proceeds of the Offering to acquire securities of private and public companies
that explore for, mine and/or process molybdenum and to acquire physical

    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.

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