Sprott Resource Lending Corp.
TSX : SIL
NYSE Amex : SILU

Sprott Resource Lending Corp.

November 12, 2010 06:33 ET

Sprott Resource Lending Corp. Updates Loan Pipeline and African Minerals Limited Mandate

TORONTO, ONTARIO--(Marketwire - Nov. 12, 2010) -

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO, THE UNITED STATES, AUSTRALIA, SOUTH AFRICA OR JAPAN

Sprott Resource Lending Corp. (TSX:SIL)(NYSE Amex:SILU) (the "Corporation" or "Sprott Resource Lending") announced today it has signed loan mandates which could provide new loans totaling up to $71 million. All of the loan mandates are subject to completion of due diligence, definitive agreements and internal approvals.

Peter Grosskopf, President and CEO, stated, "As we mentioned in the discussion of our third quarter results last Friday, November 5, 2010, we are pleased with the opportunities that are being presented to the Corporation and it is likely much of the loan pipeline would close by the end of the year. We are encouraged with our latest mandate, which was publicly announced this morning by African Minerals Limited, where Sprott Resource Lending, through Sprott Resource Lending Partnership, and Dundee Resources Limited have been appointed lead arranger for African Minerals Limited, to arrange a two year, secured, high yield loan facility of up to $500 million and arrange for the first $100 million of the loan facility. The Sprott Resource Lending portion of this loan facility would be up to $25 million."

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 oil and gas 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)

About Dundee Resources

Dundee Resources is a wholly owned subsidiary of Dundee Corporation (TSX:DC.A) and carries out Dundee Corporation's resource investments and initiatives.

These materials are not an offer for sale of securities in the United States. Securities may not be sold in the United States absent registration with the United States Securities and Exchange Commission or an exemption from registration under the U.S. Securities Act of 1933, as amended. We understand that African Minerals does not intend to register any part of the offering in the United States or to conduct any offering of securities in the United States.

CAUTION REGARDING FORWARD-LOOKING INFORMATION

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
    416.943.4998
    or
    Sprott Resource Lending Corp.
    Jim Grosdanis
    CFO
    416.943.4698
    www.sprottlending.com
    or
    Dundee Resources Limited
    Ned Goodman
    Chairman
    (416) 365-5665
    or
    Dundee Resources Limited
    Murray John
    President and Chief Executive Officer
    (416) 365-5645