Sprott Resource Corp. Announces Agreement with Paragon Minerals Corporation


    TORONTO, Nov. 15 /CNW/ - (TSX: SCP) - Sprott Resource Corp. ("SRC") is
pleased to announce that it has signed an agreement (the "Agreement") with
Paragon Minerals Corporation ("Paragon" PGR.V) under which SRC has the option
to earn up to a 70% interest in the mineral licenses comprising Paragon's JBP
- Appleton Linear Property located in the Province of Newfoundland and
Labrador (the "Mineral Licenses") through the exercise of three options, and,
thereafter participate with Paragon for the purpose of further exploration and
other related work on the Mineral Licenses and, if warranted, development and
exploitation of the Mineral Licenses.
    Under the terms of the Agreement, in order to maintain the first option
in good standing and earn a 55% interest in the Mineral Licenses, SRC is
required to, among other things:

    (i)  fund a total of $2,125,000 of work costs, or $2,375,000 of work
         costs if Paragon elects to contribute $125,000 of work costs in the
         first year, over a period of four (4) years from November 15, 2007
         (the "Effective Date"), $375,000 of which is a firm commitment and
         payable before the end of the first year following the Effective
         Date; and
    (ii) make a total of $250,000 in cash payments to Paragon over a period
         of three (3) years from the Effective Date, $25,000 of which is a
         firm commitment and payable within five (5) days of the Effective

    In order to earn an additional 10% interest in the Mineral Licenses
following the exercise of the first option, SRC would be required to, among
other things, make a cash payment of $200,000 to Paragon upon electing to earn
the second option and pay for the completion of a feasibility study on or
before the date that is eight (8) years after the Effective Date. The
feasibility study would be completed by the joint venture established by the
parties following the exercise of the first option.
    In order to earn an additional 5% interest in the Mineral Licenses
following the exercise of the second option, SRC would be required to, among
other things, pay for the joint venture's costs incurred in connection with
the completion of a positive production decision with arranged financing,
which would have to be completed on or before the date that is ten (10) years
after the Effective Date.

    TSX has confirmed to SRC that the JBP - Appleton Linear Property, and the
National Instrument 43-101 technical report prepared in respect of the JBP -
Appleton Linear Property, meet the requirements under section 314(b) of the
TSX Company Manual. As such, it is anticipated that the signing of this
Agreement will enable SRC to meet its TSX listing requirements.
    "We are pleased to be entering into this agreement with Paragon and look
forward to working with its exploration team" states Kevin Bambrough,
President and CEO of SRC. "This agreement exemplifies part of our strategy,
which is to obtain optionality on resource properties."

    About Sprott Resource Corp.

    SRC is a Canadian based company. The primary purpose of the Corporation
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. The Corporation 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. (SAM). 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. 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) 977-8333, Fax: (416) 977-9555, E-mail:

Organization Profile

Sprott Resource Corp.

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890