TORONTO, Nov. 26, 2012 /CNW/ - Sprott Resource Corp. ("SRC" or the "Company") (TSX: SCP) announced today that it purchased 4 million SRC shares for $3.55 per share under its normal course issuer bid (the "NCIB"), relying on the block purchase exemption under the NCIB rules.
SRC management is of the view that SRC's shares are trading at a significant discount to their net asset value. SRC is committed to purchasing its shares under its NCIB whenever they trade at a discount to their net asset value, provided that SRC has sufficient liquidity. Since SRC's inception in 2007, including today's purchase, it has purchased and cancelled over 21.5 million shares at a total cost of approximately $71.9 million.
The NCIB, which came into effect on September 7, 2012 and expires no later than August 31, 2013, permits SRC to purchase and cancel up to 8 million shares. Including today's purchase, SRC has purchased and cancelled under the NCIB approximately 4.9 million shares for a total cost of approximately $17.5 million. The remaining 3.1 million shares that can be purchased under the NCIB will permit SRC to purchase approximately an average of 16,475 shares per trading day until the expiry of the NCIB.
About Sprott Resource Corp.
SRC is a Canadian-based company, the primary purpose of which is to invest and operate 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 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. SRC invests and operates through Sprott Resource Partnership (SRP), a partnership between SRC and Sprott Resource Consulting Limited Partnership, an affiliate of SCLP which is the managing partner of SRP.
Forward-looking information and statements
This news release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the forgoing, this news release contains forward-looking information and statements pertaining future purchases of SRC shares under the NCIB. Forward-looking statements or information are based on a number of material factors, expectations or assumptions which have been used to develop such statements and information but which may prove to be incorrect. Although SRC believes the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because SRC can give no assurance that such expectations will prove to be correct. The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and statement, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors, which may cause actual results or events to defer materially from those anticipated in such forward-looking information or statements.
The forward-looking information and statements contained in this news release speak only as of the date of this news release, and SRC does not assume any obligation to publicly update or revise any of the included forward-looking statements or information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.
SOURCE: Sprott Resource Corp.
For further information:
Chief Financial Officer
Sprott Resource Corp.
200 Bay Street, Suite 2750
Tel: (416) 977-7333
Fax: (416) 977-9555