OEF raises $35mSprott Resource Corp. Announces Completion of $31 Million Financing by its Subsidiary One Earth Farms Corp.
TORONTO, March 17, 2011 - (TSX: SCP) - Sprott Resource Corp. ("SRC")announced that its subsidiary One Earth Farms Corp. ("One Earth Farms")completed the first tranche of a $35 million private placement today.The first tranche of the private placement consisted of the issue andsale of 22,193,921 common shares at $1.40 per share for aggregate grossproceeds of approximately $31,071,489.40. In addition, One EarthFarms expects to close the second tranche for an additional 2,806,079common shares by April 30, 2011, resulting in gross proceeds for theprivate placement of $35 million. Pursuant to the terms of the agencyagreement dated March 17, 2011 (the "Agency Agreement") entered intobetween One Earth Farms and Cormark Securities Inc. ("Cormark"), OneEarth Farms has agreed to issue and sell up to 3,571,500 additionalcommon shares at a price of $1.40 per share upon the exercise ofCormark's option.
"This financing, in combination with the $30 million that SRCcontributed in the last few months, fully funds One Earth Farms for2011. One Earth Farms has already become the largest farming operationin Canada and is on track to become one of the largest farms in theworld. This scale has enabled One Earth Farms to completely reinventthe farming model. In only two years, we have been able to lock inindustry leading discounts on key crop inputs and equipment and havestarted developing equally strong relationships with food retailers,working towards the development of branded products, particularly innatural beef" said Kevin Bambrough, President and CEO of SRC.
"I am very pleased with the support and enthusiasm of the investmentcommunity towards this capital raise. This raise emphasizes thestrength of the unique business model we have developed, our ability toscale very quickly, the distinctive competitive position we haveachieved and the recent momentum behind agriculture investments". "Ourstrong relationships with our strategic partners and suppliers, alongwith our scale, are allowing us to now focus more on the downstreammarket as we look ahead through the balance of 2011", said Larry Ruud,President and CEO of One Earth Farms.
Cormark Securities Inc. acted as agent to One Earth Farms in connection with the financing.
About Sprott Resource Corp.
SRC is a Canadian based company, the primary purpose of which is toinvest and operate in natural resources. Through acquisitions, jointventures and other investments, SRC seeks to provide its shareholderswith exposure to the natural resource sector for the purposes ofcapital appreciation and real wealth preservation. SRC is wellpositioned to draw upon the considerable experience and expertise ofboth its Board of Directors and Sprott Consulting Limited Partnership(SCLP), of which Sprott Inc. is the sole limited partner. Pursuant to amanagement services agreement between SCLP and SRC, SCLP providesday-to-day business management for SRC as well as other management andadministrative services.
About One Earth Farms Corp.
One Earth Farms is a large corporate grain and cattle farm primarilyoperating in partnership with the First Nations on First Nationsfarmland in the Prairie Provinces in Canada.