Sprott Resource Corp. Announces Normal
Course Issuer Bid
NOT FOR DISTRIBUTION TO U.S.
NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
TORONTO,
August 21, 2009 (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 6.25 million of its common shares (the �Shares�),
representing approximately 9.98% of the unrestricted public float of SRC and
approximately 7.61% of the total number of issued and outstanding Shares.� As at August 20, 2009, there were 82,283,224
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 31, 2009.� The Bid will end on the earlier of (i) August
30, 2010, (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 89,539
Shares, being 25% of the six-month average daily
trading volume of 358,157 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, an associate of a director currently intends to sell Shares during the course of the
Bid, but no other 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 purchased 8 million Shares pursuant to a normal course issuer
bid during the preceding 12 months at an average cost of $2.46 per Share.
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, please contact:
Kevin Bambrough
President and CEO
Tel: (416) 977-7333
Fax: (416) 977-9555