TORONTO, Nov. 1, 2012 /CNW/ - Sprott Resource Corp. (TSX: SCP) - Sprott Resource Corp. ("SRC") announced today that the previously announced sale of its subsidiary Waseca Energy Inc. ("Waseca") to Twin Butte Energy Ltd. ("TBE") has been completed (the "Transaction").
The consideration paid to SRC for the Transaction was comprised of approximately $55.1 million of cash and approximately 19.9 million common shares of TBE (the "TBE Shares"). Immediately subsequent to the completion of the Transaction, SRC sold all of the TBE Shares for approximately $56.6 million of cash, resulting in total cash consideration of approximately $111.7 million for the sale of Waseca. SRC invested approximately $44.2 million into Waseca.
"We are pleased to complete this transaction and want to thank the Waseca management team for their efforts over the past four years. We would also like to specifically recognize the late CEO and co-founder Mike Watson for his dedication and contribution to Waseca's success." said Kevin Bambrough, Chief Executive Officer 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
Certain statements contained herein may constitute "forward-looking statements" or "forward looking information" under applicable securities laws. Some of the forward-looking statements may be identified by words such as "expects", "intends", "anticipates", "should", "believes", "plans", and similar expressions. Forward-looking statements, which are based on management's current expectations and assumptions, involve a number of risks and uncertainties. Actual results or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. Factors that could cause actual results to differ from those expressed in, or implied by, these forward-looking statements include, without limitation, market conditions and other factors material to the investment decisions of SRC. No assurance can be given that any events anticipated by these forward-looking statements will occur. These forward-looking statements 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.
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