Sprott Resource Corp. announces $27.17 million
investment in Waseca Energy Inc.
TORONTO,
Oct. 1 - (TSX: SCP) - Sprott Resource Corp. ("SRC") today announced
that it has purchased 45,289,000 common shares of Waseca Energy Inc. ("Waseca")
for $27,173,400 ($0.60 per share), as part of a larger private placement of
52,199,589 common shares completed by Waseca (the "Private
Placement"). SRC holds 79.72% of the outstanding common shares of Waseca.
"We are pleased to partner with an
experienced oil and gas exploration and development team that has had
historical success at growing production," said Kevin Bambrough, SRC
President & CEO. "We believe that with financing in place, especially
at a time when financing is not available for most, the Waseca team is well
positioned to explore and develop its existing land base and add to it through
additional acquisitions. We also have the ability to provide additional capital
to Waseca if larger, attractive acquisition opportunities arise."
Waseca President and Chief Operating
Officer, Michael Watson, commented, "We are extremely pleased to have SRC
as our major shareholder, a firm whose expertise as an investor in the resource
sector is well recognized. We look forward to the challenge of delivering value
to all of our shareholders."
About
Waseca Energy Inc.
Waseca Energy Inc. is a private oil and
gas company whose primary focus is heavy oil production from the Lloydminster
area on the border of central Alberta and Saskatchewan.
Waseca's
principals average 33 years of technical and managerial experience. Prior to
Waseca, the principals generated significant production growth in the Lloydminster
area while employed at a major independent oil and gas company. Waseca
currently owns four prospective petroleum and natural gas leases in the Lloydminster
area. Funds from the Private Placement will be used to finance Waseca's
exploration and development program as well as potential acquisitions.
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
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", "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, risks associated with
commodity price fluctuations, regulatory risks, environmental risks,
development risks and costs and other risks associated with oil and gas
exploration and development. 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.
For
further information: Kevin Bambrough, President and CEO, Tel: (416) 977-7333, Fax:
(416) 977-9555