Sprott Resource Holdings Announces Closing of Fully Subscribed Marketed Offering

TORONTO, April 20, 2017 (GLOBE NEWSWIRE) — Sprott Resource Holdings Inc. (“SRHI”) (TSX:SRHI) is pleased to announce that it has closed its previously announced “best efforts” marketed offering (the “Offering”) of units (the “Offered Units”) made pursuant to an agency agreement dated April 3, 2017 between SRHI and a syndicate of agents led by Sprott Capital Partners, a division of Sprott Private Wealth LP, and including Haywood Securities Inc.

Pursuant to the Offering, SRHI sold 120,000,000 Offered Units at a price of $0.25 per Offered Unit for gross proceeds of $30,000,000. Each Offered Unit consisted of one class “A” common share in the capital of SRHI (a “Common Share”) and one Common Share purchase warrant (a “Warrant”). The Warrants expire on February 9, 2022 and have an exercise price of $0.333 per Common Share. 

As previously announced, SRHI intends to use the net proceeds of the Offering towards making investments in the natural resource sector and for general working capital purposes.

The Offering was completed pursuant to a short form prospectus filed in each of the provinces of Canada other than Quebec. A copy of the short form prospectus, which contains important information relating to the Units, is available on SEDAR at www.sedar.com.

The Offered Units, Common Shares and Warrants, as well as the Common Shares issuable upon exercise of the Warrants, have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any securities or “blue sky” laws of any of the states of the United States. Accordingly, such securities may not be offered or sold within the United States except in accordance with an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.

About Sprott Resource Holdings Inc.

SRHI is a publicly-listed corporation transitioning into a diversified holding company focused on holding businesses in the natural resource industry. Based in Toronto, SRHI is part of the Sprott Group of Companies and is managed by a team of leading resource investment professionals. SRHI’s current holdings are concentrated in the mining, energy and agriculture sectors. SRHI takes an active role in the companies in which it invests and is committed to being a high-value partner to the management teams it backs and the co-investors who invest alongside SRHI. For more information about SRHI, please visit www.sprottresource.com.

Forward-Looking Information and Statements

Certain statements in this press release contain forward-looking information (collectively referred to herein as the “Forward-Looking Statements”) within the meaning of applicable securities laws including, but not limited to, statements about the expected use of proceeds from the Offering and expectations regarding trading on the TSX.

Forward-Looking Statements are based on a number of expectations or assumptions which have been used to develop such statements and information but which may prove to be incorrect. Although management believes the expectations and assumptions reflected in such Forward-Looking Statements are reasonable, undue reliance should not be placed on Forward-Looking Statements because management can give no assurance that such expectations and assumptions will prove to be correct. The Forward-Looking Statements included in this press release, including with respect to the intended use of the net proceeds of the Offering, 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. Additional information on other factors that could affect the operations or financial results of SRHI are included in reports on file with applicable securities regulatory authorities, including, but not limited to, those listed under the heading “Risks relating to the Company generally” in SRHI’s Management’s Discussion and Analysis for the Year Ended December 31, 2016. 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 SRHI 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.

Contact:

Glen Williams
Director of Communications
Sprott Group of Companies
E: gwilliams@sprott.com
T: 416-943-4394