Press Release
Sprott Resource Corp. announces successful completion of warrant incentive program
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/ TORONTO, July 9 /CNW/ - (TSX:SCP) - Sprott Resource Corp. ("SRC") announces today that it has completed its previously announced warrant incentive program (the "Program") for the early exercise of warrants expiring in September 2009 (the "Warrants") (see press release dated June 24, 2008). Following the completion of the Program, 90.04 percent of Warrants have been exercised. SRC has raised $90,043,925 through the exercise of Warrants, including Warrants exercised prior to the Program. There are 3,982,430 Warrants still outstanding. As a result of the Program, 16,585,784 new warrants exercisable at $4.25 per share until December 31, 2010 (subject to early expiration if the share price of SRC closes at or above $6.00 per share for twenty (20) consecutive trading days) are outstanding. The new warrants and the common shares issuable upon the exercise of such warrants are subject to a hold period that expires on November 8, 2008. SRC currently has 89,680,224 shares outstanding. "We would like to thank both our shareholders and warrantholders for voting for the Program. The Program's success not only demonstrates the confidence of our shareholders and warrantholders in our growth strategy but provides SRC with improved financial flexibility to capitalize on additional opportunities in the marketplace," said Kevin Bambrough, President and CEO of SRC. "In light of the current credit environment, this timely injection of capital leaves SRC in a very strong financial position." 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. 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.
