TORONTO, Oct. 1 /CNW/ - (TSX: SCP) - Sprott Resource Corp. ("SRC") today
announced that it has purchased 45,289,000 common shares of Waseca Energy Inc.
("Waseca") for $27,173,400 ($0.60 per share), as part of a larger private
placement of 52,199,589 common shares completed by Waseca (the "Private
Placement"). SRC holds 79.72% of the outstanding common shares of Waseca.
"We are pleased to partner with an experienced oil and gas exploration
and development team that has had historical success at growing production,"
said Kevin Bambrough, SRC President & CEO. "We believe that with financing in
place, especially at a time when financing is not available for most, the
Waseca team is well positioned to explore and develop its existing land base
and add to it through additional acquisitions. We also have the ability to
provide additional capital to Waseca if larger, attractive acquisition
Waseca President and Chief Operating Officer, Michael Watson, commented,
"We are extremely pleased to have SRC as our major shareholder, a firm whose
expertise as an investor in the resource sector is well recognized. We look
forward to the challenge of delivering value to all of our shareholders."
About Waseca Energy Inc.
Waseca Energy Inc. is a private oil and gas company whose primary focus
is heavy oil production from the Lloydminster area on the border of central
Alberta and Saskatchewan. Waseca's principals average 33 years of technical
and managerial experience. Prior to Waseca, the principals generated
significant production growth in the Lloydminster area while employed at a
major independent oil and gas company. Waseca currently owns four prospective
petroleum and natural gas leases in the Lloydminster area. Funds from the
Private Placement will be used to finance Waseca's exploration and development
program as well as potential acquisitions.
About Sprott Resource Corp.
SRC is a Canadian based company, the primary purpose of which is to
invest, directly and indirectly, 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 Asset Management
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.
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", "anticipates", "should", "believes", "plans", and similar
expressions. Forward-looking statements, which are based on management's
current expectations and assumptions, involve a number of risks and
uncertainties. Actual results or achievements could differ materially from
those expressed in, or implied by, these forward-looking statements. Factors
that could cause actual results to differ from those expressed in, or implied
by, these forward-looking statements include, without limitation, risks
associated with commodity price fluctuations, regulatory risks, environmental
risks, development risks and costs and other risks associated with oil and gas
exploration and development. 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.
For further information:
For further information: Kevin Bambrough, President and CEO, Tel: (416)
977-7333, Fax: (416) 977-9555