Sprott Resource Corp. announces that WestFire Energy Ltd. initiated a process to identify strategic alternatives to enhance shareholder value
TORONTO, Dec. 19, 2011 - Sprott Resource Corp. (TSX: SCP) - Sprott Resource Corp. ("SRC") announced today that the Board of Directors of WestFire Energy Ltd. ("WestFire" or the "Company") (TSX:WFE), of which SRC currently holds approximately 19.5% of its common shares and approximately 99.4% of its non-voting convertible shares, or approximately 34% on a diluted basis, has decided to initiate a process to identify, examine and consider a range of strategic alternatives available to the Company with a view to enhancing shareholder value.
WestFire has announced that strategic alternatives may include, but are not limited to, a sale of all or a material portion of the assets of WestFire, either in one transaction or in a series of transactions, the outright sale of the Company, or merger or other transaction involving WestFire and a third party. For the purposes of considering strategic alternatives, WestFire has established a special committee consisting of independent directors, John Brussa (Chair), Christopher Fong and Roger Thomas and the Company's Executive Chairman, Ed Chwyl (being a non-voting member) to oversee the process. WestFire has engaged Cormark Securities Inc. as its financial advisor in connection with the process.
About WestFire
WestFire is a Calgary, Alberta based oil and gas exploration, development and production company whose shares are traded on the Toronto Stock Exchange under the trading symbol of "WFE".
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. |
