Sprott Resource Corp. Announces Holdings in Stonegate Agricom Ltd.

TORONTO, July 24, 2013 /CNW/ - Sprott Resource Corp. ("SRC") (TSX: SCP) announced today that, through Sprott Resource Partnership ("SRP"), it holds 70,950,462 common shares of Stonegate Agricom Ltd. ("Stonegate"), which based on information contained in documents publically filed by Stonegate, represents approximately 37.5% of the total issued and outstanding common shares of Stonegate (the "Shares").

On July 24, 2013, Stonegate completed a previously announced short form prospectus offering (the "Offering") of units (the "Units") of Stonegate.  The Offering was conducted by a syndicate of agents co-lead by GMP Securities L.P. and Cormark Securities Inc. and including BMO Capital Markets (collectively, the "Agents").   SRC, through SRP, acquired beneficial ownership of 12,500,000 Units for a purchase price of $0.30 per Unit (the "Offering Price") pursuant to the Offering. Each Unit consists of one Share and one Share purchase warrant (a "Warrant"). Each Warrant will entitle the holder thereof to purchase one Share at an exercise price of $0.40 per Share for a period of 24 months following the closing of the Offering. The Agents have the option to arrange for the sale of up to that number of additional Shares and/or Warrants as is equal in aggregate to 15% of the number of Units issued under the Offering during the 30 day period immediately following the closing of the Offering (the "Over-Allotment Option").

Prior to this acquisition, SRC beneficially owned 58,450,462 Shares. Following completion of the Offering, SRC beneficially owns 70,950,462 Shares, which based on information contained in documents publically filed by Stonegate, represents approximately 37.5% (or 36.5% if the Over-Allotment Option is exercised in full) of the issued and outstanding Shares.  SRC, through SRP, also acquired 12,500,000 Warrants, which based on information contained in documents publically filed by Stonegate, represents approximately 37.5% (or 32.6% if the Over-Allotment Option is exercised in full) of the issued and outstanding Warrants.

SRC acquired beneficial ownership of the Shares and Warrants for investment purposes. SRC may, directly or indirectly, purchase or sell securities of Stonegate in the future on the open market, in private transactions or otherwise, depending on market conditions and other factors material to the investment decisions of SRC.

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 to SRC's and SRP's future intentions regarding the purchase or sale of securities of Stonegate and the exercise of the Over-Allotment Option.  Forward-looking statements or information are based on a number of 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 and assumptions reflected in such forward-looking information and statements are reasonable, undue reliance should not be placed on forward-looking information and statements because SRC can give no assurance that such expectations and assumptions 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 statements, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors, which may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements, including, without limitation, those listed under the heading "Risk Factors" in SRC's annual information form dated March 28, 2013. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information and statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking information and statements contained in this news release.

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:

For further information or to obtain a copy of SRC's early warning report filed pursuant to National Instrument 62-103 with respect to the Offering, please contact:

Stephen Yuzpe
Chief Financial Officer
Sprott Resource Corp.
200 Bay Street, Suite 2750
Toronto, Ontario
M5J 2J2
Tel: (416) 977-7333
Fax: (416) 977-9555

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