TORONTO, Nov. 6 /CNW/ - (TSX:SCP) - Sprott Resource Corp. ("SRC") announced today the completion of its sale of 27,144,938 shares of PBS Coals Limited ("PBS") to 7027940 Canada Limited, an affiliate of OAO Severstal (the "Severstal") for $140,824,099 as part of Severstal's takeover bid to acquire all the issued and outstanding shares of PBS. As a result of the sale completed today and the prior sale of 17,050,000 PBS shares that was completed on September 24, 2008, SRC has received $240,667,878 from the sale of 44,194,938 PBS shares. SRC acquired the 44,194,938 PBS shares for US$54,528,978. SRC no longer owns any PBS shares.
"We are extremely pleased to be able to complete this transaction in this very difficult market," stated Kevin Bambrough, President and CEO of SRC. "Given the current environment, we plan to continue to be very patient and conservative in redeploying our capital, the vast majority of which is held in short-term Government of Canada treasury bills."
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" 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. Actual results and future events 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 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.