Sprott Inc. Announces Closing of Financing by Sprott Resource Lending Corp. (formerly Quest Capital Corp.) and Commencement of i
08 September 2010 - 9:00PM
PR Newswire (Canada)
TORONTO, Sept. 8 /CNW/ -- TORONTO, Sept. 8 /CNW/ - (TSX: SII) -
Sprott Inc. ("Sprott" or the "Company") is pleased to announce that
Sprott Resource Lending Corp. (formerly Quest Capital Corp.)
(TSX:QC) ("Sprott Resource Lending") has completed a private
placement of $25 million (the "Private Placement"). Sprott Private
Wealth LP ("SPW"), a subsidiary of the Company, acted as sole agent
to SRLC on the Private Placement. Sprott Inc. ("SII") invested
$14.4 million in the Private Placement and now owns 8,977,654
common shares of SRLC (or 5.8% of the outstanding shares). The
balance of the Private Placement was purchased by SPW clients and
employees of Sprott and its affiliates. Sprott Resource Lending is
managed by Sprott Lending Consulting LP ("SLCLP"), a subsidiary of
Sprott Consulting LP ("Sprott Consulting"), a subsidiary of SII.
Peter Grosskopf, CEO of SII will serve as President and CEO of
Sprott Resource Lending. Jim Grosdanis has joined SLCLP and will
continue as CFO of Sprott Resource Lending. Sprott Resource Lending
joins Sprott Resource Corp. (TSX:SCP) and Sprott Power Corp. as
businesses managed by SCLP and its subsidiaries. SCLP managed
businesses have net assets in excess of $625 million. "We would
like to thank Sprott Resource Lending shareholders for placing
confidence in us to manage their business," said Peter Grosskopf,
CEO of Sprott and President and CEO of Sprott Resource Lending. "We
believe that Sprott Resource Lending, like each of Sprott
Consulting's other managed businesses, is unique and
well-positioned to become a dominant player in its sector." SRLC
has cash of approximately $100 million to commit to resource
lending ("Resource Lending Assets") and has an aggressive plan to
monetize its net real estate loans of approximately $160 million to
generate additional Resource Lending Assets. SLCLP is entitled to
an annual profit interest of up to 2% of average Resource Lending
Assets for the year plus an annual incentive fee equal to 20% of
pre-tax profits generated on Resource Lending Assets above a hurdle
rate equal to the average annual yield on the Government of Canada
30-year bond multiplied by average Resource Lending Assets for the
year. Forward-Looking Statements This release contains
"forward-looking statements" which reflect the current expectations
of the Company. These statements reflect management's current
beliefs with respect to future events and are based on information
currently available to management. Forward-looking statements
involve significant known and unknown risks, uncertainties and
assumptions. Many factors could cause actual results, performance
or achievements to be materially different from any future results,
performance or achievements that may be expressed or implied by
such forward-looking statements including, without limitation,
those listed under the heading "Risk Factors" in the Company's
annual information form dated March 30, 2010. Should one or more of
these risks or uncertainties materialize, or should assumptions
underlying the forward-looking statements prove incorrect, actual
results, performance or achievements could vary materially from
those expressed or implied by the forward-looking statements
contained in this release. Although the forward-looking statements
contained in this release are based upon what the Company believes
to be reasonable assumptions, the Company cannot assure investors
that actual results, performance or achievements will be consistent
with these forward-looking statements. These forward-looking
statements are made as of the date of this release and the Company
does not assume any obligation to update or revise them to reflect
new events or circumstances. About Sprott Inc. Sprott Inc. is a
leading independent asset manager dedicated to achieving superior
returns for its clients over the long term. The company currently
operates through three distinct business units: Sprott Asset
Management LP, Sprott Private Wealth LP and Sprott Consulting LP.
Sprott Asset Management LP is the investment manager of the Sprott
family of mutual funds and hedge funds and discretionary managed
accounts; Sprott Private Wealth LP provides wealth management
services to high net worth individuals; and Sprott Consulting LP
provides management, administrative and consulting services to
other companies, including Sprott Resource Corp. (TSX: SCP). Sprott
Inc. is headquartered in Toronto, Canada, and is listed on the
Toronto Stock Exchange under the symbol "SII". For more information
on Sprott Inc., please visit www.sprottinc.com. %SEDAR: 00026778E
Investor contact information: (416) 203-2310 or 1 (877) 403-2310 or
ir@sprott.com
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