Sprott Resource Holdings Inc. (“
SRHI”) (TSX:SRHI)
announced today that pursuant to a share purchase agreement entered
into by Sev.en Met Coal Corp. and Sprott Resource Coal Holdings
Corp. (“
SRCHC”), a wholly owned subsidiary of
SRHI, it disposed of 16,244,765 common shares of Corsa Coal Corp.
(“
Corsa”) (TSXV:CSO) at a price of $0.22 per share
for aggregate gross proceeds of $3,573,848.30, subject to
adjustment in certain circumstances where the purchaser acquires
additional common shares of Corsa, representing all of SRHI’s
interests in Corsa.
Immediately prior to the closing of the
disposition, based on information contained in documents publicly
filed by Corsa, SRHI held, directly or indirectly, 16,244,765
common shares of Corsa, representing approximately 17.1% of Corsa’s
issued and outstanding common shares. Following the disposition,
SRHI’s securityholding percentage decreased by 17.1%. SRHI no
longer has ownership or control over any common shares of
Corsa.
SRHI disposed of the common shares for
investment purposes. SRHI may, directly or indirectly, purchase,
and subsequently sell, securities of Corsa in the future on the
open market, in private transactions or otherwise, depending on
market conditions and other factors material to the investment
decisions of SRHI.
Corsa’s head office is located at 1576 Stoystown
Rd., P.O. Box 260, Friedens, Pennsylvania, U.S.A., 15541.
A copy of the early warning report to be filed
by SRHI in connection with the disposition described above will be
available on SEDAR under Corsa’s profile. This news release is
issued under the early warning provisions of Canadian securities
legislation.
About Sprott Resource Holdings
Inc.
SRHI is a publicly-listed diversified resource
holding company focused on the natural resource industry. SRHI is
currently focused on expanding its copper mining operation in Chile
and divesting of its legacy investments. Based in Toronto, SRHI is
managed under a services contract by a team of resource
professionals and its business and investments are concentrated in
the mining sector. For more information about SRHI, please visit
www.sprottresource.com.
SRHI’s head office is located at Royal Bank
Plaza, 200 Bay Street, Suite 2600, Toronto, Ontario, Canada,
M5J 2J1.
Cautionary Statement Regarding
Forward-Looking Information
Certain statements in this news release, contain
forward-looking information (collectively referred to herein as the
"Forward Looking Statements") within the meaning
of applicable Canadian securities laws. The use of any of the words
"expect", "anticipate", "continue", "estimate", "may", "will",
"project", "should", "believe", "plans", "intends" and similar
expressions are intended to identify Forward-Looking Statements. In
particular, but without limiting the foregoing, this news release
contains Forward-Looking Statements pertaining to SRHI’s future
intentions regarding the purchase or sale of securities of
Corsa.
Although SRHI believes that the Forward-Looking
Statements are reasonable, they are not guarantees of future
results, performance or achievements. A number of factors or
assumptions have been used to develop the Forward-Looking
Statements, including material assumptions considered reasonable by
SRHI as at the date of this press release in light of management’s
experience and perception of current conditions and
expected developments, and are
inherently subject to significant
business, economic, and competitive uncertainties and
contingencies.
Actual results, performance or achievements
could vary materially from those expressed or implied by the
Forward-Looking Statements should assumptions underlying the
Forward-Looking Statements prove incorrect or should one or more
risks or other factors materialize, including: (i) risks associated
with the mining industry in general (e.g., operational risks in
development, exploration and production; delays or changes in plans
with respect to exploration or development projects or capital
expenditures; the uncertainty of estimates and projections relating
to mineral reserves, production, costs and expenses; and labour,
health, safety and environmental risks) and risks associated with
the other portfolio companies' industries; (ii) risks associated
with investments in emerging markets; (iii) general economic,
market and business conditions; (iii) failure to secure additional
financing in the future on acceptable terms, if at all; (iv)
commodity price fluctuations and uncertainties; (v) risks
associated with catastrophic events, manmade disasters, terrorist
attacks, wars and other conflicts, or an outbreak of a public
health pandemic or other public health crises, including COVID-19;
(vi) risk that MTV and/or the Company cease to be going concerns
and the Company’s guarantee of the MTV debt is called and the
related pledge is realized (vii) those risks disclosed under the
heading "Risk Management" in SRHI’s Management’s Discussion and
Analysis for the year ended December 31, 2019; and (viii) those
risks disclosed under the heading "Risk Factors" or incorporated by
reference into SRHI’s Annual Information Form dated March 24,
2020.
The Forward-Looking Statements speak only as of
the date hereof, unless otherwise specifically noted, and SRHI does
not assume any obligation to publicly update any Forward-Looking
Statements, whether as a result of new information, future events
or otherwise, except as may be expressly required by applicable
Canadian securities laws.
For further information or to obtain a copy of
SRHI’s early warning report filed pursuant to National Instrument
62-103 with respect to the disposition, please contact:
Michael HarrisonInterim CEO and Director (416)
543-8487mharrison@sprott.com
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