Press Release
Sprott Resource Corp. and Altius form potash joint venture in Canada
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/ TORONTO, May 6 /CNW/ - (TSX:SCP) - Sprott Resource Corp. ("SRC") announced today that it has entered into an agreement with Altius to explore for potash in the St. George's Basin in Southwestern Newfoundland. "SRC is excited to be working with Altius, a company with great exploration expertise and proven success in Eastern Canada. We feel that there are excellent opportunities for potash exploration in Eastern Canada, which has a lower cost profile than the Saskatchewan Potash Basin," states Kevin Bambrough, President and CEO of SRC. The St. George's Basin is geologically analogous to the Moncton sub-basin in New Brunswick, which is Canada's second major potash mining district. Under the agreement SRC may earn an interest in a large land package that has been assembled by Altius to cover several known potash occurrences within the basin. SRC may earn up to a 60% interest in the St. George's Project by spending C$2,500,000 over 4 years subject to an underlying 2% gross sales royalty retained by Altius. The St. Georges project consists of 1,400 claims (35,000 hectares) to cover four primary target areas for potash deposits. These targets feature historical potash drill intercepts, low gravity anomalies and salt springs that are underlain by a relatively unexplored evaporite-bearing sequence. An exploration program to evaluate the area and to identify drill targets has commenced. In addition to the St. George's Basin joint venture, Altius and SRC have also signed a strategic alliance regarding the assessment of potash exploration opportunities in Canada. Under this agreement, the two parties have agreed to collaborate in the acquisition and exploration of potash projects in Canada. About Altius Altius' business activities include the generation and acquisition of projects related to natural resources opportunities mainly located in Newfoundland & Labrador. 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, including without limitation, risks associated with mineral exploration projects. 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
