TORONTO, July 16 /CNW/ - (TSX: SCP) - Sprott Resource Corp. ("SRC") announced today that it has received a letter from the syndicate of agents (the "Agents") for the PBS Coals Corporation ("PBS") private placement informing SRC that they have priced the PBS private placement at $6.00 per subscription receipt. The Agents have confirmed and allocated orders for 35,716,000 subscription receipts for a total offering size of $214,296,000. The Agents have indicated that the offering was substantially oversubscribed and features a list of well-known international institutional investors. Assuming that the offering described above and the Talbot Group of Australia purchase (see press release dated June 27, 2008) both close as planned, SRC has received confirmation from the Agents that it will have sold, in the aggregate, approximately 17.05 million shares of PBS leaving it with an estimated 19.9 percent shareholding (or 27.14 million shares) in PBS. "We would like to thank the Agents for their efforts in respect of the offering," stated Kevin Bambrough, President and CEO of SRC. "We would also like to thank PBS management and the directors PBS for their efforts to date and for the opportunity to participate as an investor in PBS. We will remain strong supporters of PBS and look forward to PBS realizing its growth potential." The offering is expected to close on July 31, 2008, with proceeds held in escrow until closing of the Penfold Acquisition Corp. amalgamation, expected on or before August 28, 2008. The closing of the offering is subject to due diligence, execution of the agency agreement between PBS, the selling shareholders and the Agents, and standard material change clauses. 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 can be identified by words such as "expects", "anticipates", "should", "believes", "plans", and similar expressions. These statements necessarily involve risk, including without limitation, risks associating with the PBS offering and the sale to the Talbot Group of Australia not closing. 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.
You are now leaving Sprott.com and entering a linked website. Sprott has partnered with ALPS in offering Sprott ETFs. For fact sheets, marketing materials, prospectuses, performance, expense information and other details about the ETFs, you will be directed to the ALPS/Sprott website at SprottETFs.com.Continue to Sprott Exchange Traded Funds
You are now leaving Sprott.com and entering a linked website. Sprott Asset Management is a sub-advisor for several mutual funds on behalf of Ninepoint Partners. For details on these funds, you will be directed to the Ninepoint Partners website at ninepoint.com.Continue to Ninepoint Partners