Sprott Resource Corp.
announces Severstal's mailing of take-over bid circular to PBS sharholders
/NOT FOR DISTRIBUTION TO U.S.
NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
TORONTO,
Sept. 5 - Sprott Resource Corp. ("SRC") announced today that it has
been informed that a wholly-owned subsidiary of Severstal Resources, the mining
division of OAO Severstal ("Severstal") has mailed its offer to
purchase all the outstanding common shares of PBS Coals Limited, the company
resulting from the business combination of Penfold Capital Acquisition
Corporation ("Penfold") and PBS Coals Corporation ("PBS"),
for a price of Cdn.$8.30 per share (the "Offer").
SRC previously announced
that it had signed a lock-up agreement with Severstal under which it has agreed
to tender into the Offer (see press release dated August 22, 2008). The Offer
may not be accepted by security holders of PBS until the completion of PBS'
business combination with Penfold, which SRC understands is expected to be
completed on or about September 24, 2008.
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 can be identified by
words such as "expects", "anticipates", "should",
"believes", "plans", and similar expressions. These
statements necessarily involve risk, including without limitation, risks
associated with the Offer, including the possibility that the conditions
relating to the offer may not be satisfied or that all required regulatory
approvals may not be obtained. Actual results and future events 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 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