Press Release
Sprott Resource Corp. announces $27.17 million investment in Waseca Energy Inc.
TORONTO, Oct. 1 /CNW/ - (TSX: SCP) - Sprott Resource Corp. ("SRC") today announced that it has purchased 45,289,000 common shares of Waseca Energy Inc. ("Waseca") for $27,173,400 ($0.60 per share), as part of a larger private placement of 52,199,589 common shares completed by Waseca (the "Private Placement"). SRC holds 79.72% of the outstanding common shares of Waseca. "We are pleased to partner with an experienced oil and gas exploration and development team that has had historical success at growing production," said Kevin Bambrough, SRC President & CEO. "We believe that with financing in place, especially at a time when financing is not available for most, the Waseca team is well positioned to explore and develop its existing land base and add to it through additional acquisitions. We also have the ability to provide additional capital to Waseca if larger, attractive acquisition opportunities arise." Waseca President and Chief Operating Officer, Michael Watson, commented, "We are extremely pleased to have SRC as our major shareholder, a firm whose expertise as an investor in the resource sector is well recognized. We look forward to the challenge of delivering value to all of our shareholders." About Waseca Energy Inc. Waseca Energy Inc. is a private oil and gas company whose primary focus is heavy oil production from the Lloydminster area on the border of central Alberta and Saskatchewan. Waseca's principals average 33 years of technical and managerial experience. Prior to Waseca, the principals generated significant production growth in the Lloydminster area while employed at a major independent oil and gas company. Waseca currently owns four prospective petroleum and natural gas leases in the Lloydminster area. Funds from the Private Placement will be used to finance Waseca's exploration and development program as well as potential acquisitions. 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 may be identified by words such as "expects", "anticipates", "should", "believes", "plans", and similar expressions. Forward-looking statements, which are based on management's current expectations and assumptions, involve a number of risks and uncertainties. Actual results or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. Factors that could cause actual results to differ from those expressed in, or implied by, these forward-looking statements include, without limitation, risks associated with commodity price fluctuations, regulatory risks, environmental risks, development risks and costs and other risks associated with oil and gas exploration and development. No assurance can be given that any events anticipated by these 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.
