Sprott Resource Corp. ("SRC") is pleased to announce that it intends to commence a normal course issuer bid (the "Bid") to repurchase up to 7.0 million of its common shares (the "Shares"), representing approximately 9.38% of the unrestricted public float of SRC and approximately 7.27% of the total number of issued and outstanding Shares. As at August 25, 2010, there were 96,251,427 Shares of SRC outstanding. Purchases will be made for cancellation through the facilities of the Toronto Stock Exchange (the "TSX") at the prevailing market price of the Shares.
SRC has received approval from the TSX to commence the Bid on September 1, 2010. The Bid will end on the earlier of (i) August 31, 2011, (ii) when the number of common shares sought under the Bid have been obtained, and (iii) when notice is given by SRC to the TSX terminating the Bid if SRC determines that it is appropriate to do so. Pursuant to TSX policies, daily purchases made by SRC may not exceed 29,337 Shares, being 25% of the six-month average daily trading volume of 117,350 Shares on the TSX, subject to certain prescribed TSX exceptions including the "block purchase exemption".
SRC believes that its Shares have been trading in a price range that does not adequately reflect the value of the Shares in relation to SRC's assets and future prospects. As a result, SRC believes that, at appropriate times, repurchases through the Bid can enhance shareholder value and represents an attractive investment and an appropriate use of SRC's financial resources. |
