TORONTO, April 29, 2013 /CNW/ - Stonegate Agricom Ltd. ("Stonegate" or
the "Company") (TSX: ST) and Sprott Resource Corp. ("SRC") (TSX: SCP)
today jointly announced that they have reached an agreement for
Stonegate to acquire SRC's fully drawn $7.5 million loan facility for
11,538,462 Stonegate common shares at a price of $0.65 per share. The
proposed transaction is expected to close by May 7, 2013.
The number of Stonegate outstanding shares will increase to 155,909,371
and SRC's ownership of Stonegate shares will increase to 58,450,462 or
37.5% from the current level of 46,912,000 or 32.5%. The transaction is
subject to the approval of the Toronto Stock Exchange (TSX).
"We welcome the continuing financial support of SRC, our largest
shareholder. This transaction will eliminate the security and debt
covenants associated with the loan and allow us the freedom to pursue a
full range of financing options required to acquire the mining
equipment fleet and to construct and commence operation of the proposed
underground mine at our Paris Hills phosphate property in Idaho," said
Mark Ashcroft, Stonegate's President and Chief Executive Officer.
About Stonegate Agricom
Stonegate Agricom, which is actively engaged in acquiring and developing
agricultural nutrient projects, is currently focused on the development
of two potentially world-class, long-life phosphate deposits, the Paris
Hills Phosphate Project located in Idaho and the Mantaro Phosphate
Project located in Peru. The Company is confident that the two deposits
have sufficient size and grade to become strategic, cost-effective
sources of phosphate supply for major fertilizer producers. More
information is available at www.stonegateagricom.com.
About Sprott Resource Corp.
SRC is a Canadian-based company, the primary purpose of which is to
invest and operate in natural resources. Through acquisitions, joint
ventures and other investments, SRC seeks to provide its shareholders
with exposure to the natural resource sector for the purposes of
capital appreciation and real wealth preservation. SRC is well
positioned to draw upon the considerable experience and expertise of
both its Board of Directors and Sprott Consulting LP (SCLP), of which
Sprott Inc. is the sole limited partner. Pursuant to a management
services agreement between SCLP and SRC, SCLP provides day-to-day
business management for SRC as well as other management and
administrative services. SRC invests and operates through Sprott
Resource Partnership (SRP), a partnership between SRC and Sprott
Resource Consulting Limited Partnership, an affiliate of SCLP which is
the managing partner of SRP.
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements" and
"forward-looking information" within the meaning of applicable law,
which include statements herein relating to the potential to increase
mineral resource and mineral reserve estimates. Generally,
forward-looking statements and forward-looking information can be
identified by the use of forward-looking terminology such as "plans",
"expects" or "does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", "believes", or variations of such words and phrases or
statements that certain actions, events or results "may", "could",
"would", "might" or "will be taken", "occur" or "be achieved". All
forward-looking statements and forward-looking information are based on
reasonable assumptions that have been made by the Company as at the
date of such information. Forward-looking statements and
forward-looking information are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of the Company to be
materially different from those expressed or implied by such
forward-looking statements and forward-looking information, including
but not limited to: risks relating to assumptions used in preparation
of the Feasibility Study and Pre-Feasibility Study on the Lower
Phosphate Zone of the Paris Hills Phosphate Project including
government regulation, phosphate prices, labour costs and capital
costs, and project risks including project location, permitting
requirements, project delays, ground control and dilution and water
management; the general risks associated with the speculative nature of
the Company's business, commodity prices, current global financial
conditions, uncertainty of additional capital, price volatility, the
Paris Hills Phosphate Project being an advanced exploration stage
project, limited operating history, no history of earnings, government
regulation in the mining industry, environmental risks and hazards,
impending climate change legislation, required approvals and permits,
foreign subsidiaries, risks relating to the retention of the Paris
Hills project, expiration of leases and permits for the Paris Hills
Project, title to mineral properties, obtaining and converting mineral
concessions and surface rights, community relations and project
support, water rights, exploration, development and operating risks,
uncertainty in the estimation of mineral reserves and resources,
uncertainty of inferred mineral resources, mineral exploration,
reliability of historical exploration work, absence of public trading
market, risks associated with having a controlling shareholder,
arbitrary offering price, dilution to the common shares, dependence on
key personnel, currency fluctuations, insurance and uninsured risks,
competition, legal proceedings, conflicts of interest and lack of
dividends as well as those factors discussed in the section entitled
"Risk Factors" in the Company's most recently filed annual information
form available at www.sedar.com. Although the Company has attempted to identify important factors that
could cause actual results to differ materially from those contained in
forward-looking statements and forward-looking information, there may
be other factors that cause results not to be as anticipated, estimated
or intended. There can be no assurance that such information will
prove to be accurate, as actual results and future events could differ
materially from those anticipated in such statements or information.
Accordingly, readers should not place undue reliance on forward-looking
statements or forward-looking information. The forward-looking
statements and forward-looking information contained in this press
release are included for the purpose of providing investors with
information to assist them in understanding the Company's expected
financial and operational performance and may not be appropriate for
other purposes. Stonegate does not undertake to update any
forward-looking statement or forward-looking information that is
included herein, except in accordance with applicable securities laws.
SOURCE: Stonegate Agricom Ltd
<p> Wayne Cheveldayoff<br/> Vice President, Investor Relations<br/> Stonegate Agricom Ltd.<br/> Tel: 416-479-4359<br/> <a href="mailto:wcheveldayoff@stonegateagricom.com">wcheveldayoff@stonegateagricom.com</a><br/> <br/> Stephen Yuzpe<br/> Chief Financial Officer<br/> Sprott Resource Corp.<br/> 200 Bay Street, Suite 2750<br/> Toronto, Ontario<br/> M5J 2J2<br/> Tel: (416) 977-7333<br/> Fax: (416) 977-9555 </p> <p> Christine Stewart<br/> Renmark Financial Communications Inc.<br/> Tel: 416-644-2020<br/> <a href="mailto:cstewart@renmarkfinancial.com">cstewart@renmarkfinancial.com</a> </p>