TORONTO, Jan. 28, 2013 /CNW/ - Sprott Resource Corp. (TSX: SCP) - Sprott Resource Corp. ("SRC") announced today that, through Sprott Resource Partnership ("SRP"), it holds 9,444,815 common shares of Virginia Energy Resources Inc. ("Virginia Energy"), which based on information contained in documents publically filed by Virginia Energy, represents approximately 16.5% of the total issued and outstanding common shares of Virginia Energy (the "Shares").
Pursuant to Virginia Energy's previously announced private placement (the "Placement"), which closed on January 25, 2013, SRP acquired ownership of 2,857,143 Shares at a purchase price of $0.42 per Share pursuant to a subscription agreement dated January 14, 2013.
SRP acquired the Shares for investment purposes. SRP may purchase or sell securities of Virginia Energy 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 SRP.
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 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", "intends", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans" and similar expressions are intended to identify forward-looking information and 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 Virginia Energy. Forward-looking information or statements are based on a number of expectations or assumptions which have been used to develop such information and statements but which may prove to be incorrect, including, but not limited to, expectations or assumptions regarding market conditions and other factors material to the investment decisions of SRC and SRP. 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 new 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 27, 2012. 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 information or statements, 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