Press Release
Sprott Resource Corp. Announces Intention to Complete Buy Out of Mantaro Group's Interest in Phosphate Project
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/ TORONTO, April 30 /CNW/ - (TSX:SCP) - Sprott Resource Corp. ("SRC") today announced that it has signed a letter of intent with Lara Exploration Ltd. and two individual geologists (collectively the "Mantaro Group") to purchase their future interests under the option and exploration agreement entered into between SRC and the Mantaro Group on November 15, 2007 (the "Original Agreement") (see November 16, 2007 press release). Under the Original Agreement, had SRC elected to exercise its option, the Mantaro Group would have been entitled to receive 20% of the shares of a new project company formed on a Qualifying Transaction, as well as payments of US$2 million. The Mantaro Group has agreed to sell its future 20% interest in a new project company for 1,771,308 common shares of SRC and US$1.5 million in cash, along with additional cash payments of up to US$4 million conditional on certain required community agreements, permits and licenses. The proposed transactions are subject to the execution and delivery of a definitive agreement. "I would like to thank the Mantaro Group for its support and the confidence it has shown in us by electing to accept common shares of SRC rather than cash," stated Kevin Bambrough, President and CEO of SRC. The restructuring of this project will allow us to have full control of the project, which will enable us to explore opportunities with joint venture partners, potential management groups and liquidity options. We are very excited about the potential of this project, especially given current prices of phosphate rock and phosphate based fertilizers." SRC is working towards completing a NI 43-101 compliant Geological Report, which it expects to be completed by the end of this quarter. 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.
