Sprott Resource Holdings Press Releases


Press Release

Sprott Resource Corp. Announces Launch of One Earth Farms Corp.


        TORONTO, March 4 /CNW/ - (TSX: SCP) - Sprott Resource Corp. ("SRC")  announced today that it has launched One Earth Farms Corp. ("One Earth  Farms"), a large scale, fully-integrated corporate farming entity, which  intends to have operations on world class First Nations' farmland in the  Prairie Provinces. SRC will invest $27.5 million in One Earth Farms to  establish operations, fund working capital and support its initial growth.      "We believe that the opportunities associated with this new venture are  unprecedented in the agricultural industry," said Kevin Bambrough, President  and CEO of SRC. "We intend to build a long-term profitable agricultural  business in partnership with the First Nations, which will improve the  management and environmental sustainability of First Nations' farmland as well  as benefit their peoples through increased revenue and job opportunities. We  have assembled an exceptional team at One Earth Farms, which we believe  provides the industry experience and operational skill necessary to build One  Earth Farms."        About One Earth Farms        Management has designed a program to begin farming operations in a hub  and spoke system designed to plant crops and ranch lands in annual increments,  beginning with an initial minimum target of 50,000 acres in the first year of  operations. One Earth Farms' professional management team, its strong  capitalization and its access to large tracts of world class First Nations'  farmland, positions One Earth Farms to become the largest, most efficient,  operating farm in Canada.      Management believes that the timing for this venture is opportune. Global  trends continue to impact food supplies, as arable land continues to decline,  fresh water remains in short supply and various regions of the world are  experiencing severe, recurring droughts. In addition, the global credit crisis  has impacted the financing available to farmers and will negatively impact  crop production in the short term. These factors, combined with a global  population that continues to rise, are creating food security issues and in  turn fueling substantial farming investment demand globally.      One Earth Farms intends to initiate job training programs for First  Nations persons, which will help train the next generation of farmers, provide  One Earth Farms with a pool of qualified employees for the future and further  strengthen the relationship between One Earth Farms and the First Nations.        Appointment of Management of One Earth Farms        Larry Ruud will serve as President and CEO of One Earth Farms. Mr. Ruud  brings over fifteen years experience as an active management consultant for  farmers in areas such as commodity price management, capital investment  decisions, process improvement, management and ownership transition and in  developing farming agreements. In 2000, Mr. Ruud merged his company into and  became a partner at Meyers Norris Penny, where he has led the firm's Alberta  Agriculture Consulting Team. Mr. Ruud is a director of Viterra Inc., which is  the largest grain company in Canada, and a member of its Audit Committee. Mr.  Ruud holds a M.Sc. in Agriculture Economics from the University of Alberta.      "With large tracts of high quality land, Western Canada provides  significant opportunity to develop a large, efficient and profitably managed  corporate farm. We intend to build an industry leading business based on  environmentally sustainable practices, respect for the First Nations peoples  and a culture of excellence which extends across the One Earth Farms  organization," said Mr. Ruud.      Blaine Favel, President and CEO of One Earth Resources Corp., has been  appointed director of One Earth Farms and Chairman of One Earth Farms GP  Corp., the manager of the limited partnership through which First Nations'  land will be leased and farmed. Mr. Favel brings over eighteen years of  experience in First Nations business development as an advisor, entrepreneur  and Chief. Mr. Favel is a former Grand Chief of the Federation of Saskatchewan  Indian Nations where he pioneered two national firsts; the establishment of  the First Nations Bank of Canada and the Saskatchewan Indian Gaming Authority.  Mr. Favel holds an LLB from Queens University and an MBA from Harvard Business  School.      "One Earth Farms has received enthusiastic support from First Nations as  our business model generates significant value for First Nations through the  creation of employment for their peoples, best in class land management  practices, and the development of agri-industry joint-venture initiatives,"  said Blaine Favel, Director of One Earth Farms.      Fred Siemens will serve as COO of One Earth Farms. Mr. Siemens has been  an active participant in a wide variety of roles in the agri-business  community for more than 20 years, having held the positions of Supervisor of  Grain Futures Trading for Canada on behalf of the Canadian Grain Commission  and President and CEO of the Winnipeg Commodity Exchange. Mr. Siemens has also  been a part owner of an Alberta-based commodity brokerage specializing in  agricultural risk management and has worked at the firm of Meyers Norris  Penny. He has served on the boards of the Canada Grains Council, the Manitoba  Institute of Agrologists, the Flax Council and the Winnipeg Chamber of  Commerce Agricultural Committee.      Eric Sprott will act as Chairman of One Earth Farms. Mr. Sprott has over  35 years of experience in the investment industry and currently acts as  Chairman of SRC and President and CEO of Sprott Inc. He is also the portfolio  manager at Sprott Asset Management Inc. for Sprott Hedge Fund L.P., Sprott  Hedge Fund L.P. II, Sprott Offshore Fund, Sprott Canadian Equity Fund, Sprott  Energy Fund, Sprott Bull/Bear RSP Fund and the Sprott Managed Accounts.        Additional Financing for One Earth Farms        One Earth Farms intends to initiate strategic industry partnerships,  either through preferred supply relationships or preferred long-term sales  agreements for its production. As well, One Earth Farms has engaged Cormark  Securities on a financial advisory basis to explore the raising of third party  capital for One Earth Farms from industry sources, credit providers and other  equity investors.        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" or "forward-looking information" under applicable securities laws.  Some of the forward-looking statements may be identified by words such as  "expects", "anticipates", "should", "believes", "plans", and similar  expressions. Forward-looking statements, which are based on management's  current expectations and assumptions, 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, risks  associated with commodity price fluctuations, regulatory risks, environmental  risks, operational risks and other risks associated with a large scale farming  operation. 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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