Press Release
Sprott Resource Corp. Announces Launch of One Earth Farms Corp.
TORONTO, March 26 /CNW/ - (TSX: SCP) - Sprott Resource Corp. ("SRC") announced today that it has launched One Earth Farms Corp. ("One Earth Farms"), a large scale, fully-integrated corporate farming entity, which intends to have operations on world class First Nations' farmland in the Prairie Provinces. SRC will invest $27.5 million in One Earth Farms to establish operations, fund working capital and support its initial growth. "We believe that the opportunities associated with this new venture are unprecedented in the agricultural industry," said Kevin Bambrough, President and CEO of SRC. "We intend to build a long-term profitable agricultural business in partnership with the First Nations, which will improve the management and environmental sustainability of First Nations' farmland as well as benefit their peoples through increased revenue and job opportunities. We have assembled an exceptional team at One Earth Farms, which we believe provides the industry experience and operational skill necessary to build One Earth Farms." About One Earth Farms Management has designed a program to begin farming operations in a hub and spoke system designed to plant crops and ranch lands in annual increments, beginning with an initial minimum target of 50,000 acres in the first year of operations. One Earth Farms' professional management team, its strong capitalization and its access to large tracts of world class First Nations' farmland, positions One Earth Farms to become the largest, most efficient, operating farm in Canada. Management believes that the timing for this venture is opportune. Global trends continue to impact food supplies, as arable land continues to decline, fresh water remains in short supply and various regions of the world are experiencing severe, recurring droughts. In addition, the global credit crisis has impacted the financing available to farmers and will negatively impact crop production in the short term. These factors, combined with a global population that continues to rise, are creating food security issues and in turn fueling substantial farming investment demand globally. One Earth Farms intends to initiate job training programs for First Nations persons, which will help train the next generation of farmers, provide One Earth Farms with a pool of qualified employees for the future and further strengthen the relationship between One Earth Farms and the First Nations. Appointment of Management of One Earth Farms Larry Ruud will serve as President and CEO of One Earth Farms. Mr. Ruud brings over fifteen years experience as an active management consultant for farmers in areas such as commodity price management, capital investment decisions, process improvement, management and ownership transition and in developing farming agreements. In 2000, Mr. Ruud merged his company into and became a partner at Meyers Norris Penny, where he has led the firm's Alberta Agriculture Consulting Team. Mr. Ruud is a director of Viterra Inc., which is the largest grain company in Canada, and a member of its Audit Committee. Mr. Ruud holds a M.Sc. in Agriculture Economics from the University of Alberta. "With large tracts of high quality land, Western Canada provides significant opportunity to develop a large, efficient and profitably managed corporate farm. We intend to build an industry leading business based on environmentally sustainable practices, respect for the First Nations peoples and a culture of excellence which extends across the One Earth Farms organization," said Mr. Ruud. Blaine Favel, President and CEO of One Earth Resources Corp., has been appointed director of One Earth Farms and Chairman of One Earth Farms GP Corp., the manager of the limited partnership through which First Nations' land will be leased and farmed. Mr. Favel brings over eighteen years of experience in First Nations business development as an advisor, entrepreneur and Chief. Mr. Favel is a former Grand Chief of the Federation of Saskatchewan Indian Nations where he pioneered two national firsts; the establishment of the First Nations Bank of Canada and the Saskatchewan Indian Gaming Authority. Mr. Favel holds an LLB from Queens University and an MBA from Harvard Business School. "One Earth Farms has received enthusiastic support from First Nations as our business model generates significant value for First Nations through the creation of employment for their peoples, best in class land management practices, and the development of agri-industry joint-venture initiatives," said Blaine Favel, Director of One Earth Farms. Fred Siemens will serve as COO of One Earth Farms. Mr. Siemens has been an active participant in a wide variety of roles in the agri-business community for more than 20 years, having held the positions of Supervisor of Grain Futures Trading for Canada on behalf of the Canadian Grain Commission and President and CEO of the Winnipeg Commodity Exchange. Mr. Siemens has also been a part owner of an Alberta-based commodity brokerage specializing in agricultural risk management and has worked at the firm of Meyers Norris Penny. He has served on the boards of the Canada Grains Council, the Manitoba Institute of Agrologists, the Flax Council and the Winnipeg Chamber of Commerce Agricultural Committee. Eric Sprott will act as Chairman of One Earth Farms. Mr. Sprott has over 35 years of experience in the investment industry and currently acts as Chairman of SRC and President and CEO of Sprott Inc. He is also the portfolio manager at Sprott Asset Management Inc. for Sprott Hedge Fund L.P., Sprott Hedge Fund L.P. II, Sprott Offshore Fund, Sprott Canadian Equity Fund, Sprott Energy Fund, Sprott Bull/Bear RSP Fund and the Sprott Managed Accounts. Additional Financing for One Earth Farms One Earth Farms intends to initiate strategic industry partnerships, either through preferred supply relationships or preferred long-term sales agreements for its production. As well, One Earth Farms has engaged Cormark Securities on a financial advisory basis to explore the raising of third party capital for One Earth Farms from industry sources, credit providers and other equity investors. 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, 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.
