Sprott Resource Lending Corp.

Sprott Resource Lending Corp.

March 09, 2011 16:53 ET

Sprott Resource Lending Corp. Announces Approval of Normal Course Issuer Bid

TORONTO, ONTARIO--(Marketwire - March 9, 2011) - Sprott Resource Lending Corp. (TSX:SIL)(NYSE Amex:SILU)(the "Corporation" or "Sprott Resource Lending") announced today that it has received approval from the Toronto Stock Exchange (the "TSX") for its normal course issuer bid ("NCIB"), under which the Corporation may make open market purchases of its common shares ("Common Shares") through the facilities of the TSX. Purchases pursuant to the NCIB may be made during the twelve month period commencing on March 16, 2011 and ending on March 15, 2012 or on such earlier date as the Corporation may complete its purchases or otherwise terminate the bid.

Under the NCIB, the Corporation may purchase up to 9,881,214 Common Shares, which represents approximately 10% of the total of the Corporation's public float; Sprott Resource Lending has 154,694,758 Common Shares issued and outstanding as at March 7, 2011 and its public float is approximately 98,812,140 Common Shares. The actual number of Common Shares purchased, the timing of the purchases and the prices at which the Common Shares will be purchased will depend upon future market conditions. A maximum of 62,978 Common Shares (being 25% of the average daily trading volume) may be purchased by the Corporation on any one day under the NCIB, except where purchases are made in accordance with "block purchases" exemptions under applicable TSX policies. The Corporation will pay market price at the time of acquisition for any Common Shares purchased under the NCIB. The Corporation will cancel Common Shares purchased under the NCIB.

The Corporation purchased 11,934,400 Common Shares at an average price of $1.35 per Common Share under its previous normal course issuer bid, which terminated on December 17, 2010. The Corporation also purchased 489,342 Common Shares at a price of $1.60 per Common Share under a substantial issuer bid that was completed on August 30, 2010.

The Corporation's directors believe that the purchase from time to time of Common Shares may be a worthwhile investment for the Corporation that should benefit remaining shareholders by increasing their proportionate equity and voting interests in the Corporation and offering liquidity to shareholders who wish to dispose of their Common Shares. In addition, the Corporation's directors believe that purchases of Common Shares for cancellation through the NCIB may, by reducing the number of outstanding Common Shares, reduce the discount that may exist between the market price of its Common Shares and the Corporation's net asset value per Common Share.

About Sprott Resource Lending Corp.

Sprott Resource Lending specializes in bridge and mezzanine lending to precious and base metal mining, exploration and development companies and energy companies on a global basis. Headquartered in Toronto, the Corporation seeks to generate income from lending activities as well as the upside potential of bonus arrangements with borrowers generally tied to the underlying property or shares of the borrower.

Sprott Resource Lending (www.sprottlending.com) was founded by Quest Capital Corp. and Sprott Lending Consulting Limited Partnership. Sprott Lending Consulting LP is a wholly owned subsidiary of Sprott Inc., the parent of Sprott Asset Management LP (www.sprott.com), a leading Canadian independent money manager.

For more information about Sprott Resource Lending, please visit SEDAR (www.sedar.com).


This press release may include certain statements that constitute "forward-looking statements", and "forward looking information" within the meaning of applicable securities laws ("forward-looking statements" and "forward-looking information" are collectively referred to as "forward-looking statements", unless otherwise stated). Such forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Forward-looking statements may relate to the Corporation's future outlook and anticipated events or results and may include statements regarding the Corporation's future financial position, business strategy, budgets, litigation, projected costs, financial results, taxes, plans and objectives. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends affecting the financial condition of our business. These forward-looking statements were derived utilizing numerous assumptions regarding expected growth, results of operations, performance and business prospects and opportunities that could cause our actual results to differ materially from those in the forward-looking statements. While the Corporation considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect.

Forward-looking statements should not be read as a guarantee of future performance or results. Forward-looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward looking statements. To the extent any forward-looking statements constitute future-oriented financial information or financial outlooks, as those terms are defined under applicable Canadian securities laws, such statements are being provided to describe the current potential of the Corporation and readers are cautioned that these statements may not be appropriate for any other purpose, including investment decisions. Forward-looking statements speak only as of the date those statements are made. Except as required by applicable law, we assume no obligation to update or to publicly announce the results of any change to any forward-looking statement contained or incorporated by reference herein to reflect actual results, future events or developments, changes in assumptions or changes in other factors affecting the forward looking statements. If we update any one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. You should not place undue importance on forward-looking statements and should not rely upon these statements as of any other date. All forward looking statements contained in this press release are expressly qualified in their entirety by this cautionary notice.

Contact Information

  • Sprott Resource Lending Corp.
    Peter Grosskopf
    President and CEO
    Sprott Resource Lending Corp.
    Jim Grosdanis