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TORONTO, July 9 /CNW/ - (TSX:SCP) - Sprott Resource Corp. ("SRC")
announces today that it has completed its previously announced warrant
incentive program (the "Program") for the early exercise of warrants expiring
in September 2009 (the "Warrants") (see press release dated June 24, 2008).
Following the completion of the Program, 90.04 percent of Warrants have been
exercised. SRC has raised $90,043,925 through the exercise of Warrants,
including Warrants exercised prior to the Program. There are
3,982,430 Warrants still outstanding. As a result of the Program, 16,585,784
new warrants exercisable at $4.25 per share until December 31, 2010 (subject
to early expiration if the share price of SRC closes at or above $6.00 per
share for twenty (20) consecutive trading days) are outstanding. The new
warrants and the common shares issuable upon the exercise of such warrants are
subject to a hold period that expires on November 8, 2008. SRC currently has
89,680,224 shares outstanding.
"We would like to thank both our shareholders and warrantholders for
voting for the Program. The Program's success not only demonstrates the
confidence of our shareholders and warrantholders in our growth strategy but
provides SRC with improved financial flexibility to capitalize on additional
opportunities in the marketplace," said Kevin Bambrough, President and CEO of
SRC. "In light of the current credit environment, this timely injection of
capital leaves SRC in a very strong financial position."
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