Sprott Resource Holdings Press Releases


Press Release

Sprott Resource Corp. announces PBS Coals has signed letter of intent to enter into business combination with Penfold Capital


        /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN      THE UNITED STATES/        TORONTO, June 17 /CNW/ - (TSX:SCP) - Sprott Resource Corp. ("SRC")  announced today that one of its investments, PBS Coals Corporation ("PBS  Coals"), has entered into a letter of intent with Penfold Capital Acquistion  Corporation (TSX-V:PNA.P) ("Penfold") to enter into a business combination  with Penfold. SRC currently has a 31.6% interest in PBS Group (defined below).      "With the global coal market continuing to tighten, the investment demand  for eastern USA coal producers remains strong," said Kevin Bambrough,  President and CEO of SRC. "We expect to further increase SRC's shareholder  value through the public listing of PBS Coals and the elevation of its profile  in the public marketplace."      PBS is a private British Columbia Corporation which owns 85% of the  equity of the PBS Coals Group of Companies, a privately held group of  companies engaged in the mining, processing and sale of metallurgical and  thermal coal from their properties in Central Pennsylvania (the "PBS Group").  The PBS Group consists of PBS Coals, Inc. and Rox Coal, Inc., two Delaware  corporations, and their subsidiaries and holding companies. The PBS Group  currently produces approximately 3 million clean tons of bituminous coal a  year from both its underground and surface operations. The PBS Group has  initiated a mine expansion program to increase production to 5 million clean  tons per year over the next two fiscal years (consisting primarily of  metallurgical coal) and to complete construction of its Cambria processing  facility.        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.        %SEDAR: 00003905E        

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