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TORONTO, Nov. 16 /CNW/ - (TSX: SCP) - Sprott Resource Corp. ("SRC") is
pleased to announce that it has signed an exploration and option agreement
(the "Agreement") with Lara Exploration Ltd. ("Lara" LRA.V) and other members
of the Mantaro Group, under which SRC has the option to acquire a 100%
interest in the Mantaro phosphate project in Peru. The Mantaro Group, of which
Lara is a member, is an unincorporated joint venture that holds the rights to
the Mantaro phosphate project.
"We are very excited about this project and the opportunity to
participate in the expanding market for phosphate-based fertilizers," states
Kevin Bambrough, President and CEO of SRC. "We would like to thank Miles
Thompson of Lara and the other members of the Mantaro Group for agreeing to
work with us on this project. We look forward to brining this project
Under the terms of the Agreement, SRC has the option to acquire a 100%
interest in the Mantaro phosphate project by funding exploration and technical
studies, making cash payments over four (4) years totaling approximately
US$2,000,000 and issuing shares to the Mantaro Group in a new project company
equal to 20% of the outstanding shares at the time of the Qualifying
Transaction. In addition, the Mantaro Group will receive a 2% royalty on any
production from the Mantaro phosphate project, subject to SRC's option to
purchase the royalty for the equivalent in cash of 2% of the net present value
of the project upon the completion of the full feasibility study. A finder's
fee of CAD$50,000 will be paid by SRC to Integral Wealth Securities Limited.
SRC intends to issue a subsequent press release at a later date in which
it will provide additional information on the Mantaro phosphate project.
About Sprott Resource Corp.
SRC is a Canadian based company. The primary purpose of SRC 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 Ltd. (SCL), a wholly-owned subsidiary of Sprott Asset
Management Inc. Pursuant to a management services agreement between SCL and
SRC, SCL provides day-to-day business management for SRC as well as other
management and administrative services.
Forward Looking Statements
Certain statements regarding SRC, including management's assessment of
future plans, may constitute forward-looking statements under applicable
securities laws and necessarily involve risk, including without limitation,
risks associated with the mining industry such as future commodity prices,
economic factors, government regulation, environmental risks, capital
expenditures and risks associated with exploration and option agreements.
SRC's actual results or achievements could differ materially from those
expressed in, or implied by, the forward-looking statements. No assurance can
be given that any events anticipated by the forward-looking statements will
occur. These forward-looking statements, which are based on management's
current expectations, 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 Chief Executive
Officer, Tel: (416) 977-7333, Fax: (416) 977-9555, E-mail: