Sprott Resource Holdings Press Releases


Press Release

Sprott Resource Corp. Announces Intention to Complete Buy Out of Mantaro Group's Interest in Phosphate Project


        /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN      THE UNITED STATES/        TORONTO, April 30 /CNW/ - (TSX:SCP) - Sprott Resource Corp. ("SRC") today  announced that it has signed a letter of intent with Lara Exploration Ltd. and  two individual geologists (collectively the "Mantaro Group") to purchase their  future interests under the option and exploration agreement entered into  between SRC and the Mantaro Group on November 15, 2007 (the "Original  Agreement") (see November 16, 2007 press release).      Under the Original Agreement, had SRC elected to exercise its option, the  Mantaro Group would have been entitled to receive 20% of the shares of a new  project company formed on a Qualifying Transaction, as well as payments of  US$2 million. The Mantaro Group has agreed to sell its future 20% interest in  a new project company for 1,771,308 common shares of SRC and US$1.5 million in  cash, along with additional cash payments of up to US$4 million conditional on  certain required community agreements, permits and licenses. The proposed  transactions are subject to the execution and delivery of a definitive  agreement.      "I would like to thank the Mantaro Group for its support and the  confidence it has shown in us by electing to accept common shares of SRC  rather than cash," stated Kevin Bambrough, President and CEO of SRC. The  restructuring of this project will allow us to have full control of the  project, which will enable us to explore opportunities with joint venture  partners, potential management groups and liquidity options. We are very  excited about the potential of this project, especially given current prices  of phosphate rock and phosphate based fertilizers."      SRC is working towards completing a NI 43-101 compliant Geological  Report, which it expects to be completed by the end of this quarter.        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, including without limitation,  risks associated with mineral exploration projects. 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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