Sprott Resource Lending Corp.

Sprott Resource Lending Corp.

October 07, 2011 16:47 ET

Sprott Resource Lending Corp. Updates Its Resource Portfolio

TORONTO, ONTARIO--(Marketwire - Oct. 7, 2011) - Sprott Resource Lending Corp. (TSX:SIL)(NYSE Amex:SILU) (the "Company" or "Sprott Resource Lending") continues to build its resource lending portfolio.

As of October 6, 2011, Sprott Resource Lending has advanced approximately $114 million in resource loans which includes $25 million in a senior secured note with North American Palladium Ltd. Peter Grosskopf, President and CEO stated, "We are very pleased with our continued growth in our resource lending book which recently included acting as the lead investor in the North American Palladium Ltd. notes financing. The most recent downturn in the equity markets has once again amplified our loan pipeline and with approximately $80 million of available funds, we are well positioned to capitalize on these new opportunities".

Normal Course Issuer Bid

Under its normal course issuer bid ("NCIB"), previously announced on March 9, 2011, the Company may make open market purchases of up to 9,881,214 of its common shares ("Shares") through the facilities of the Toronto Stock Exchange ("TSX") during the 12 month period that commenced on March 16, 2011 and will terminate on March 15, 2012. To date, the Company has purchased 892,978 Shares under the NCIB.

In connection with the NCIB, the Company is establishing an automatic purchase plan (the "Plan") with a broker to facilitate purchases of Shares under the NCIB. The Plan permits the Company to provide standing instructions to its broker as to how Shares are to be repurchased during internal blackout periods.

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 Company 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).

Contact Information

  • Sprott Resource Lending Corp.
    Peter Grosskopf
    President and CEO

    Sprott Resource Lending Corp.
    Jim Grosdanis