/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR
FOR DISSEMINATION IN THE UNITED STATES/
TORONTO, July 25, 2014 /CNW/ - Sprott Inc. ("Sprott" or the "Corporation") (TSX: SII) announced today that the underwriters of its secondary
offering that closed on July 15, 2014 (the "Offering") exercised in full their over-allotment option to purchase from
2176423 Ontario Ltd., a company controlled by Eric Sprott (the "Selling Shareholder"), an additional 3,000,000 common shares of the Corporation (the "Additional Shares") at a price of $3.00 per Share (the "Issue Price"), for additional gross proceeds of $9,000,000, increasing the size of
the Offering to $69,000,000. The sale of the Additional Shares closed
today.
The Offering was made through a syndicate of underwriters co-led by TD
Securities Inc. and Scotia Capital Inc., and including RBC Dominion
Securities Inc., CIBC World Markets Inc., GMP Securities L.P.,
Canaccord Genuity Corp., Cormark Securities Inc. and Desjardins
Securities Inc.
The Corporation did not receive any proceeds from the sale of the
Additional Shares. The Selling Shareholder intends to use the proceeds
from the sale of the Additional Shares to invest in funds and
securities managed by Sprott or its affiliates, with a focus on
precious metals-related investments.
The Selling Shareholder has also agreed to sell, on a non-brokered
private placement basis (the "Private Placement"), 5,000,000 common shares of the Corporation (the "Private Placement Shares" and together with the Additional Shares, the "Shares") at the Issue Price to the Sprott Inc. 2011 Employee Profit Sharing
Plan. Closing of the Private Placement is expected to occur in August
2014.
Without giving effect to the Private Placement, the Selling Shareholder
now owns an approximate 26.23% interest in the Corporation.
This press release is not an offer of securities for sale in the United
States. The Shares being offered have not been and will not be
registered under the United States Securities Act of 1933 and
accordingly are not being offered for sale and may not be offered, sold
or delivered, directly or indirectly within the United States, its
possessions and other areas subject to its jurisdiction or to, or for
the account or for the benefit of a U.S. person, except pursuant to an
exemption from the registration requirements of that Act.
About Sprott Inc.
Sprott Inc. is a leading independent asset manager dedicated to
achieving superior returns for its clients over the long term. The
Corporation currently operates primarily through six business units:
Sprott Asset Management LP, Sprott Private Wealth LP, Sprott Consulting
LP, Sprott Resource Lending Corp., Sprott Toscana and Sprott U.S.
Holdings Inc. Sprott Asset Management is the investment manager of the
Sprott family of mutual funds and hedge funds and discretionary managed
accounts; Sprott Private Wealth provides wealth management services to
high net worth individuals; and Sprott Consulting and Sprott Toscana
provide management, administrative and consulting services to other
companies. Sprott Resource Lending provides lending services to mining
and energy sectors. Sprott U.S. Holdings Inc. includes Sprott Global
Resource Investments Ltd., Sprott Asset Management USA Inc., and
Resource Capital Investments Corporation. Sprott Inc. is headquartered
in Toronto, Canada, and its common shares are listed on the Toronto
Stock Exchange under the symbol "SII". For more information on Sprott
Inc., please visit www.sprottinc.com.
Forward-Looking Information and Statements
This press release contains certain forward-looking information and
statements (collectively referred to herein as "Forward-Looking Statements") within the meaning of applicable 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 forgoing, this press release
contains Forward-Looking Statements pertaining to the use of proceeds
by the Selling Shareholder and the expected closing date of the Private
Placement.
Forward-Looking Statements are based on a number of expectations or
assumptions, which have been used to develop such information and
statements but which may prove to be incorrect, including, but not
limited to that the Selling Shareholder will invest the net proceeds of
the sale of the Additional Shares as disclosed in this press release.
Although the Corporation believes the expectations and assumptions
reflected in such Forward-Looking Statements are reasonable, undue
reliance should not be placed on Forward-Looking Statements because the
Corporation can give no assurance that such expectations and
assumptions will prove to be correct. The Forward-Looking Statements
included in this press release are not guarantees of future performance
and should not be unduly relied upon. Such information and statements,
including the assumptions made in respect thereof, involve known and
unknown risks, uncertainties and other factors, which may cause actual
results or events to differ materially from those anticipated in such
Forward-Looking Statements, including, without limitation, (i)
circumstances relating to the Selling Shareholder resulting in a change
of investment in respect of the net proceeds; (ii) those risks listed
under the heading "Risk Factors" in the Corporation's annual
information form dated March 27, 2014; (iii) those risks disclosed
under the heading "Managing Risk" in the Corporation's MD&A for the
three months ended March 31, 2014; and (iv) other risks, which are
beyond the control of the Corporation or its subsidiaries. Should one
or more of these risks or uncertainties materialize, or should
assumptions underlying the Forward-Looking Statements prove incorrect,
actual results, performance or achievements could vary materially from
those expressed or implied by the Forward-Looking Statements contained
in this press release.
The Forward-Looking Statements contained in this press release speak
only as of the date of this press release, and the Corporation does not
assume any obligation to publicly update or revise any of the included
Forward-Looking Statements, whether as a result of new information,
future events or otherwise, except as may be expressly required by
applicable securities laws.
SOURCE Sprott Inc.
<p> <b>Investor contact information: </b> </p> <p> Glen Williams<br/> Director of Communications<br/> (416) 943-4394<br/> <a href="mailto:gwilliams@sprott.com" font-weight="bold">gwilliams@sprott.com</a> </p>