Sprott Resource Corp. Announces Sale of 17.05 Million Shares of PBS Coals Corporationadmin
Friday, August 1st 2008
Sprott Resource Corp. (“SRC”) announced that it has sold into escrow 17,050,000 shares of PBS Coals Corporation (“PBS”), as part of a treasury and secondary offering of 35,716,000 Subscription Receipts (each a “Security”) closed by PBS at a price of $6.00 per Security. SRC previously announced its intention to sell shares of PBS as part of the offering (see press release dated June 27, 2008). SRC continues to own 27,140,000 shares of PBS.
Each Security effectively represents a right to receive a common share of PBS Coals Limited, the company to be formed from the business combination between PBS and Penfold Capital Acquisition Corporation (“Penfold”), upon the occurrence of release conditions including TSX approval and satisfaction of the conditions to the PBS and Penfold business combination. The aggregate proceeds from the offering will be held in escrow pending the completion of the business combination of PBS and Penfold.
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.
For further information
please contact: Kevin Bambrough, President and Chief Executive Officer, Tel: (416) 977-7333, Fax: (416) 977-9555, E-mail: email@example.com