TORONTO, Dec. 19, 2012 /CNW/ - (TSX:SCP) - Sprott Resource Corp. ("SRC" or the "Company") announced today that it has increased the maximum price at which the Company will repurchase and cancel common shares as set out in its Automatic Repurchase Plan (the "Plan") to $4.60 per share. The Plan, previously put in place with a broker on September 4, 2012, was established in connection with the Company's Normal Course Issuer Bid (the "Bid"), which commenced on September 7, 2012, in order to facilitate purchases of SRC's common shares under the Bid. The Plan permits SRC to provide standing instructions to its broker as to how the Company's common shares are to be repurchased, including during internal blackout periods and/or when the Company is in possession of material non-public information. SRC did not possess material non-public information about itself or its securities at the time it increased the maximum price.
The Company believes that it is in the best interest of its shareholders to purchase shares for cancellation when management believes they are trading at a discount. SRC is of the view that, at appropriate times, repurchases through the Bid can enhance shareholder value and represents an attractive investment and an appropriate use of the Company's financial resources.
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. SRC invests and operates through Sprott Resource Partnership (SRP), a partnership between SRC and Sprott Resource Consulting Limited Partnership, an affiliate of SCLP which is the managing partner of SRP.
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.
SOURCE: Sprott Resource Corp.