/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
TORONTO, Aug. 26 /CNW/ - (TSX:SCP) - Sprott Resource Corp. ("SRC") is
pleased to announce that it intends to commence a normal course issuer bid
(the "Bid") to repurchase up to 8 million of its common shares (the "Shares"),
representing approximately 9.9% of the unrestricted public float of SRC and
approximately 8.9% of the total number of issued and outstanding Shares. As at
August 22, there were 89,777,224 Shares of SRC outstanding. Purchases will be
made for cancellation through the facilities of the Toronto Stock Exchange
(the "TSX") at the prevailing market price of the Shares.
SRC has received approval from the TSX to commence the Bid on August 29,
2008. The Bid will end on the earlier of (i) August 28, 2009, (ii) when the
number of common shares sought under the Bid have been obtained, and (iii)
when notice is given by SRC to the TSX terminating the Bid if SRC determines
that it is appropriate to do so. Pursuant to TSX policies, daily purchases
made by SRC may not exceed 156,994 Shares, being 25% of the six-month average
daily trading volume of 627,979 Shares on the TSX, subject to certain
prescribed TSX exceptions including the "block purchase exemption".
SRC believes that its Shares have been trading in a price range that does
not adequately reflect the value of the Shares in relation to SRC's assets and
future prospects. As a result, SRC believes that, at appropriate times,
repurchases through the Bid can enhance shareholder value and represents an
attractive investment and an appropriate use of SRC's financial resources.
To the knowledge of SRC, no director or senior officer, no person acting
jointly or in concert with SRC and no person holding 10% or more of any Shares
of SRC currently intends to sell Shares during the course of the Bid. However,
sales by such persons through the facilities of the TSX may occur if the
personal circumstances of any such person changes or any such person makes a
decision unrelated to the Bid. The benefits to any such person whose Shares
are purchased would be the same as the benefits available to all other holders
whose Shares are purchased under the Bid. SRC has not purchased any of its
Shares pursuant to a normal course issuer bid during the preceding 12 months.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be any sale of
the securities in any state or other jurisdiction in which such offer,
solicitation or sale would be unlawful.
About Sprott Resource Corp.
SRC is a Canadian based company, the primary purpose of which 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 Limited Partnership (SCLP), of which Sprott Asset Management
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.
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 CEO, Tel: (416)
977-7333, Fax: (416) 977-9555