Sprott Resource Holdings Press Releases


Press Release

Sprott Resource Corp. announces normal course issuer bid


/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN      THE UNITED STATES/TORONTO, Aug. 21 /CNW/ - (TSX:SCP) - Sprott Resource Corp. ("SRC") is  pleased to announce that it intends to commence a normal course issuer bid  (the "Bid") to repurchase up to 6.25 million of its common shares (the  "Shares"), representing approximately 9.98% of the unrestricted public float  of SRC and approximately 7.61% of the total number of issued and outstanding  Shares. As at August 20, 2009, there were 82,283,224 Shares of SRC  outstanding. Purchases will be made for cancellation through the facilities of  the Toronto Stock Exchange (the "TSX") at the prevailing market price of the  Shares.      SRC has received approval from the TSX to commence the Bid on August 31,  2009. The Bid will end on the earlier of (i) August 30, 2010, (ii) when the  number of common shares sought under the Bid have been obtained, and (iii)  when notice is given by SRC to the TSX terminating the Bid if SRC determines  that it is appropriate to do so. Pursuant to TSX policies, daily purchases  made by SRC may not exceed 89,539 Shares, being 25% of the six-month average  daily trading volume of 358,157 Shares on the TSX, subject to certain  prescribed TSX exceptions including the "block purchase exemption".      SRC believes that its Shares have been trading in a price range that does  not adequately reflect the value of the Shares in relation to SRC's assets and  future prospects. As a result, SRC believes that, at appropriate times,  repurchases through the Bid can enhance shareholder value and represents an  attractive investment and an appropriate use of SRC's financial resources.      To the knowledge of SRC, an associate of a director currently intends to  sell Shares during the course of the Bid, but no other director or senior  officer, no person acting jointly or in concert with SRC and no person holding  10% or more of any Shares of SRC currently intends to sell Shares during the  course of the Bid. However, sales by such persons through the facilities of  the TSX may occur if the personal circumstances of any such person changes or  any such person makes a decision unrelated to the Bid. The benefits to any  such person whose Shares are purchased would be the same as the benefits  available to all other holders whose Shares are purchased under the Bid. SRC  has purchased 8 million Shares pursuant to a normal course issuer bid during  the preceding 12 months at an average cost of $2.46 per Share.        This press release shall not constitute an offer to sell or the  solicitation of an offer to buy any securities, nor shall there be any sale of  the securities in any state or other jurisdiction in which such offer,  solicitation or sale would be unlawful.        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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