Sprott Resource Corp. announces current holdings
of gold and silver bullion
TORONTO,
Dec. 15 - (TSX:SCP) - Sprott Resource Corp. ("SRC") announced today
that it has acquired during this quarter 40,475 ounces of gold bullion and
852,478 ounces of silver bullion. The balance of SRC's working capital is in
short-term government of Canada
treasury bills.
"We intend to continue to look for
attractive investment opportunities to allocate our capital while working on
building accretive businesses," said Kevin Bambrough, President and CEO of
SRC. "In the interim, we feel it is prudent to allocate a portion of our
working capital into gold and silver bullion. We may allocate a larger portion into
gold and silver, or other physical commodities, in the future depending on
market conditions."
Kevin
Bambrough continued: "Current yields on short-term government debt are
approaching, and in certain cases have reached, zero percent. This is occurring
while governments are assuming liabilities and issuing debt at an unprecedented
rate. We believe this situation is not sustainable over the longer-term and
that global creditors will begin to hoard hard assets, in particular gold and
silver, rather than purchase government debt that offers little nominal yield
and is subject to a loss in real value as currencies are debased."
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" under
applicable securities laws. Some of the forward-looking statements may be
identified by words such as "intends", "expects",
"anticipates", "should", "believes", "plans",
and similar expressions. These statements are based on current estimates,
factors and assumptions, including expectations regarding the SRC's future
strategy and business and the execution of its existing plans. These statements
involve known and unknown risk. No assurance can be given that any events
anticipated by the forward-looking statements will occur. Actual results and
future events could differ materially from those expressed in, or implied by,
the forward-looking statements. As a result, readers are cautioned not to place
undue reliance on these forward-looking statements. 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