TORONTO, July 15, 2011 /CNW/ - Sprott Resource Corp. (TSX: SCP) - Sprott Resource Corp. ("SRC") announced today that it has acquired ownership of 1,990,100 common shares of Galleon Energy Inc. ("Galleon"), which, based on information contained in documents publicly filed by Galleon, represents approximately 2.4% of the total issued and outstanding common shares of Galleon. The common shares were acquired through the facilities of the Toronto Stock Exchange for a purchase price of $3.10 per common share.
After giving effect to the acquisition referred to above, SRC owns 10,244,966 common shares of Galleon at an average purchase price of $3.11 per common share, which, based on information contained in documents publicly filed by Galleon, represents approximately 12.2% of the total issued and outstanding common shares of Galleon.
SRC has acquired the common shares of Galleon for investment purposes. SRC may purchase or sell securities of Galleon in the future on the open market, in private transactions or otherwise, depending on market conditions and other factors material to the investment decisions of SRC.
About Sprott Resource Corp.
SRC is a Canadian based company, the primary purpose of which is to invest and operate 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.
Forward Looking Statements
Certain statements contained herein may constitute "forward-looking statements" or "forward looking information" under applicable securities laws. Some of the forward-looking statements may be identified by words such as "expects", "intends", "anticipates", "should", "believes", "plans", and similar expressions. Forward-looking statements, which are based on management's current expectations and assumptions, including statements with respect to SRC's future intentions regarding the purchase or sale of securities of Galleon, involve a number of risks and uncertainties. Actual results or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. Factors that could cause actual results to differ from those expressed in, or implied by, these forward-looking statements include, without limitation, market conditions and other factors material to the investment decisions of SRC. No assurance can be given that any events anticipated by these 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.
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