NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
TORONTO, March 06, 2017 (GLOBE NEWSWIRE) -- Sprott Resource Holdings Inc. (“SRHI”) (TSX:SRHI) announced today that is has filed a preliminary short form prospectus (the “Prospectus”) in connection with a “best efforts” marketed offering (the “Offering”) of units (the “Offered Units”). Each Offered Unit consists of one class “A” common share in the capital of SRHI (a “Common Share”) and one Common Share purchase warrant in the capital of SRHI (a “Warrant”). Each Warrant will expire on February 9, 2022 and has a strike price of $0.333 per Common Share. A syndicate of Agents for the Offering is being led by Sprott Capital Partners, a division of Sprott Private Wealth LP, and includes Haywood Securities Inc.
The Offered Units will be offered by way of the Prospectus which has been filed in all of the provinces of Canada, excluding Québec, pursuant to National Instrument 44-101 Short Form Prospectus Distributions, and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended (the “U.S. Securities Act”). The Prospectus contains important information relating to the Offering and is still subject to completion or amendment. For more information, potential investors should read the Prospectus which is available on SEDAR at www.sedar.com. There will not be any sale or any acceptance of an offer to buy the Offered Units until a receipt for the final short form prospectus has been issued.
SRHI intends to use the net proceeds of the Offering towards making investments in the natural resources sector and for general working capital purposes.
The Offering will be priced in the context of the market with the final terms of the Offering to be determined at the time of pricing. Closing of the Offering will be subject to customary closing conditions including, without limitation, receipt of all regulatory and stock exchange approvals.
This press release does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, nor shall there be any sale of securities in any jurisdiction in which such offer or sale would be unlawful. The Offered Units, Common Shares and Warrants, as well as the Common Shares issuable upon exercise of the Warrants, have not been and will not be registered under the U.S. Securities Act, or any securities or “blue sky” laws of any of the states of the United States. Accordingly, such securities may not be offered or sold within the United States except in accordance with an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.
About Sprott Resource Holdings Inc.
SRHI is a publicly-listed corporation transitioning into a diversified holding company focused on holding businesses in the natural resource industry. Based in Toronto, SRHI is part of the Sprott Group of Companies and is managed by a team of leading resource investment professionals. SRHI’s current holdings are concentrated in the mining, energy and agriculture sectors. SRHI takes an active role in the companies in which it invests and is committed to being a high-value partner to the management teams it backs and the co-investors who invest alongside SRHI. For more information about SRHI, please visit www.sprottresource.com.
Forward-Looking Information and Statements
Certain statements in this press release contain forward-looking information (collectively referred to herein as the “Forward-Looking Statements”) within the meaning of applicable securities laws including, but not limited to, statements about: the completion of the proposed Offering, the expected use of proceeds from the Offering, the receipt of regulatory and other required approvals for the Offering, expectations regarding trading on the TSX, and similar statements concerning anticipated future events, results, circumstances, performance or expectations, that reflect management’s current expectations and are based on information currently available to management of SRHI and its subsidiaries.
Forward-Looking Statements are based on a number of expectations or assumptions which have been used to develop such statements and information but which may prove to be incorrect. Although management believes the expectations and assumptions reflected in such Forward-Looking Statements are reasonable, undue reliance should not be placed on Forward-Looking Statements because management can give no assurance that such expectations and assumptions will prove to be correct. The Forward-Looking Statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and statements, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors, which may cause actual results or events to differ materially from those anticipated in such Forward-Looking Statements, including, but not limited to, a failure to obtain necessary regulatory and other third party approvals and SRHI’s inability to complete the Offering. The foregoing factors are not exhaustive. Additional information on other factors that could affect the operations or financial results of SRHI are included in reports on file with applicable securities regulatory authorities, including, but not limited to, those listed under the heading “Risks relating to the Company generally” in SRHI’s Management’s Discussion and Analysis for the Year Ended December 31, 2016. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the Forward-Looking Statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the Forward Looking Statements contained in this news release.
The Forward-Looking Statements contained in this news release speak only as of the date of this news release, and SRHI does not assume any obligation to publicly update or revise any of the included Forward-Looking Statements, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.
Managing Director, Investor Relations
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