/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/ TORONTO, June 24 /CNW/ - (TSX:SCP) - Sprott Resource Corp. ("SRC") announces today that it has received all necessary approvals required to proceed with a warrant incentive program (the "Warrant Incentive Program") for the early exercise of 37,154,000 warrants that expire September 5, 2009 (the "Warrants"). "We would like to thank all shareholders and warrantholders who voted for the program," stated Kevin Bambrough, President and CEO of SRC. "We would encourage all warrantholders to take advantage of the program and exercise their warrants early." A total of 52,031,346 common shares were eligible to be voted on the record date of May 15, 2008 (the "Record Date"). Total common shares voted were 34,571,469. Total common shares voted "for" the program were 34,285,134 (99.17% of common shares voted or 65.89% of the outstanding common shares as at the Record Date) compared to 286,335 common shares voted "against" the program (0.83% of common shares voted or 0.55% of the outstanding common shares as at the Record Date). Insiders (and their associates and their affiliates) held 11,195,806 common shares as at the Record Date. Excluding the votes of insiders (and their associates and affiliates), 23,089,328 common shares were voted "for" the program. This represents 56.5% of disinterested common shares as at the Record Date. Insiders (and their associates and affiliates) held 7,809,450 or 19.71% Warrants as at the Record Date. Each registered warrantholder will receive formal notice of the Warrant Incentive Program. Beneficial warrantholders who wish to exercise should contact their broker with instructions as soon as possible. Under the Warrant Incentive Program, each warrantholder who exercises a Warrant prior to 4:30 p.m. on July 7, 2008 (the "Deadline") will receive, in addition to a common share, one-half of one new common share purchase warrant (a "New Warrant"). Each whole New Warrant will be exercisable for one common share at a price of $4.25 until December 31, 2010, subject to SRC's ability to accelerate the expiration if the closing trading price of SRC's common shares is equal to or greater than $6.00 for 20 consecutive trading days. Warrants that are not exercised prior to the Deadline will remain unchanged. New Warrants will be issued upon exercise of any Warrants prior to the Deadline, provided that each New Warrant will be subject to a four-month plus one day hold period from the Deadline date regardless of the date of issue. SRC intends to apply to TSX to list the New Warrants upon the expiry of such hold period. The New Warrants are governed pursuant to the terms of a warrant indenture, which contains standard anti-dilution provisions. 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 regarding SRC, including management's assessment of future plans, may constitute forward-looking statements under applicable securities laws and necessarily involve risk. SRC's actual results or achievements 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, which are based on management's current expectations, 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.
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