Sprott Resource Corp. Announces Intention to Complete Buy Out of Mantaro Group's Interest in Phosphate Project
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TORONTO, April 30 - (TSX:SCP) - Sprott Resource Corp. ("SRC") today
announced that it has signed a letter of intent with Lara Exploration Ltd. and
two individual geologists (collectively the "Mantaro Group") to purchase their
future interests under the option and exploration agreement entered into
between SRC and the Mantaro Group on November 15, 2007 (the "Original
Agreement") (see November 16, 2007 press release).
Under the Original Agreement, had SRC elected to exercise its option, the
Mantaro Group would have been entitled to receive 20% of the shares of a new
project company formed on a Qualifying Transaction, as well as payments of
US$2 million. The Mantaro Group has agreed to sell its future 20% interest in
a new project company for 1,771,308 common shares of SRC and US$1.5 million in
cash, along with additional cash payments of up to US$4 million conditional on
certain required community agreements, permits and licenses. The proposed
transactions are subject to the execution and delivery of a definitive
agreement.
"I would like to thank the Mantaro Group for its support and the
confidence it has shown in us by electing to accept common shares of SRC
rather than cash," stated Kevin Bambrough, President and CEO of SRC. The
restructuring of this project will allow us to have full control of the
project, which will enable us to explore opportunities with joint venture
partners, potential management groups and liquidity options. We are very
excited about the potential of this project, especially given current prices
of phosphate rock and phosphate based fertilizers."
SRC is working towards completing a NI 43-101 compliant Geological
Report, which it expects to be completed by the end of this quarter.
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, including without limitation,
risks associated with mineral exploration projects. 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: Kevin Bambrough, President and Chief Executive
Officer, Tel: (416) 977-7333, Fax: (416) 977-9555, E-mail:
info@sprottresource.com
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Sprott Resources is based in Canada. Sprott Resources holds various exploration projects in Chile. Its main exploration properties are GOLD COIN, PRODUCTORA, MARKHAM WASH and MONITOR in Chile. Sprott Resources is listed in Canada. Its market capitalisation is 28.5 millions as of today (US$ 21.7 millions, € 20.4 millions). Its stock quote reached its highest recent level on October 25, 1996 at 96.38, and its lowest recent point on January 29, 2016 at 0.36. Sprott Resources has 47 442 200 shares outstanding. |