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TORONTO, May 2 /CNW/ - (TSX: SCP) - Sprott Resource Corp. ("SRC") announced that its subsidiary One Earth Farms Corp. ("One Earth Farms") completed the second tranche of the previously announced private placement today. The second tranche of the private placement consisted of the issuance and sale of 2,806,079 common shares, resulting in gross proceeds for the private placement of approximately $3.9 million. In addition, the agent of the private placement, Cormark Securities Inc., exercised its over-allotment option, resulting in the sale by One Earth Farms of a further 3,186,778 common shares at a price of $1.40 per share for additional aggregate gross proceeds to One Earth Farms of approximately $4.5 million. As previously announced, this financing, in combination with the $30 million that SRC has contributed in the last few months, fully funds One Earth Farms for 2011.
"The completion of the second tranche and the exercise of the over-allotment option further solidifies our balance sheet as we look to the 2011 farming season" said Larry Ruud, President and CEO of One Earth Farms. "This continues to support the belief in our unique business model and excitement about the continued growth and success of One Earth Farms."
About Sprott Resource Corp.
SRC is a Canadian based company, the primary purpose of which is to invest and operate 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 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.
About One Earth Farms Corp.
One Earth Farms is a large corporate grain and cattle farm primarily operating in partnership with the First Nations on First Nations farmland in the Prairie Provinces in Canada.
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", "intends", "anticipates", "should", "believes", "plans", and similar expressions. Forward-looking statements, which are based on management's current expectations and assumptions, including One Earth Farms' ability to reach its future growth plans and to achieve profitability through economies of scale and efficient operations, 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 its ability to sign and maintain leases covering its targeted land base, commodity price fluctuations, regulatory risks, environmental risks, operational risks, and other risks associated with a large scale farming operation. 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.
The securities described in this press release have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. This press release is for information purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
