Sprott Resource Corp. Announces Closing of Secondary
Offering of Common Shares in Stonegate Agricom Ltd.
TORONTO, March 9, 2011 - (TSX: SCP)
- Sprott Resource Corp. ("SRC") today
announced the closing of the previously announced secondary offering of
25,000,000 common shares of Stonegate Agricom Ltd. ("Stonegate Agricom") by SRC at a price of $1.75 per common share
for aggregate gross proceeds of $43,750,000.
The offering was completed by a syndicate
of underwriters led by GMP Securities L.P., and including BMO Capital Markets
Inc., Scotia Capital Inc., Canaccord Genuity Corp., Cormark Securities
Inc., Mackie Research Capital Corporation, National Bank Financial Inc., Stonecap Securities Inc., Northern Securities Inc. and
Octagon Capital Corporation. The underwriters continue to have an
over-allotment option, exercisable for a period of 30 days from the closing of
the offering, to purchase up to an additional 3,750,000 common shares of Stonegate Agricom from SRC at a
price of $1.75 per common share. SRC currently holds 50,662,000 common shares
of Stonegate Agricom,
representing an approximate 36% interest in Stonegate
Agricom on an undiluted basis.
This press release does not constitute an
offer to sell or an offer to buy any securities of Stonegate
Agricom in any jurisdiction in which such offer,
solicitation or sale would be unlawful. These securities have not been and will
not be registered under the United States Securities Act of 1933, as amended
(the "U.S. Securities Act") or any state securities laws and may not
be offered or sold in the United States except in compliance with the
registration requirements of the U.S. Securities Act and applicable U.S. state
securities laws or pursuant to an exemption therefrom.
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 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..
For more information, please visit www.sprottresource.com.
For further information:
Stephen Yuzpe
Chief Financial Officer
Tel: (416) 977-7333
Fax: (416) 977-9555