Sprott Resource Corp. Announces Launch of One Earth Farms Corp.
TORONTO, March 4 /CNW/ - (TSX: SCP) - Sprott Resource Corp. ("SRC")announced today that it has launched One Earth Farms Corp. ("One EarthFarms"), a large scale, fully-integrated corporate farming entity, whichintends to have operations on world class First Nations' farmland in thePrairie Provinces. SRC will invest $27.5 million in One Earth Farms toestablish operations, fund working capital and support its initial growth. "We believe that the opportunities associated with this new venture areunprecedented in the agricultural industry," said Kevin Bambrough, Presidentand CEO of SRC. "We intend to build a long-term profitable agriculturalbusiness in partnership with the First Nations, which will improve themanagement and environmental sustainability of First Nations' farmland as wellas benefit their peoples through increased revenue and job opportunities. Wehave assembled an exceptional team at One Earth Farms, which we believeprovides the industry experience and operational skill necessary to build OneEarth Farms." About One Earth Farms Management has designed a program to begin farming operations in a huband spoke system designed to plant crops and ranch lands in annual increments,beginning with an initial minimum target of 50,000 acres in the first year ofoperations. One Earth Farms' professional management team, its strongcapitalization and its access to large tracts of world class First Nations'farmland, positions One Earth Farms to become the largest, most efficient,operating farm in Canada. Management believes that the timing for this venture is opportune. Globaltrends continue to impact food supplies, as arable land continues to decline,fresh water remains in short supply and various regions of the world areexperiencing severe, recurring droughts. In addition, the global credit crisishas impacted the financing available to farmers and will negatively impactcrop production in the short term. These factors, combined with a globalpopulation that continues to rise, are creating food security issues and inturn fueling substantial farming investment demand globally. One Earth Farms intends to initiate job training programs for FirstNations persons, which will help train the next generation of farmers, provideOne Earth Farms with a pool of qualified employees for the future and furtherstrengthen the relationship between One Earth Farms and the First Nations. Appointment of Management of One Earth Farms Larry Ruud will serve as President and CEO of One Earth Farms. Mr. Ruudbrings over fifteen years experience as an active management consultant forfarmers in areas such as commodity price management, capital investmentdecisions, process improvement, management and ownership transition and indeveloping farming agreements. In 2000, Mr. Ruud merged his company into andbecame a partner at Meyers Norris Penny, where he has led the firm's AlbertaAgriculture Consulting Team. Mr. Ruud is a director of Viterra Inc., which isthe largest grain company in Canada, and a member of its Audit Committee. Mr.Ruud holds a M.Sc. in Agriculture Economics from the University of Alberta. "With large tracts of high quality land, Western Canada providessignificant opportunity to develop a large, efficient and profitably managedcorporate farm. We intend to build an industry leading business based onenvironmentally sustainable practices, respect for the First Nations peoplesand a culture of excellence which extends across the One Earth Farmsorganization," said Mr. Ruud. Blaine Favel, President and CEO of One Earth Resources Corp., has beenappointed director of One Earth Farms and Chairman of One Earth Farms GPCorp., the manager of the limited partnership through which First Nations'land will be leased and farmed. Mr. Favel brings over eighteen years ofexperience in First Nations business development as an advisor, entrepreneurand Chief. Mr. Favel is a former Grand Chief of the Federation of SaskatchewanIndian Nations where he pioneered two national firsts; the establishment ofthe First Nations Bank of Canada and the Saskatchewan Indian Gaming Authority.Mr. Favel holds an LLB from Queens University and an MBA from Harvard BusinessSchool. "One Earth Farms has received enthusiastic support from First Nations asour business model generates significant value for First Nations through thecreation of employment for their peoples, best in class land managementpractices, and the development of agri-industry joint-venture initiatives,"said Blaine Favel, Director of One Earth Farms. Fred Siemens will serve as COO of One Earth Farms. Mr. Siemens has beenan active participant in a wide variety of roles in the agri-businesscommunity for more than 20 years, having held the positions of Supervisor ofGrain Futures Trading for Canada on behalf of the Canadian Grain Commissionand President and CEO of the Winnipeg Commodity Exchange. Mr. Siemens has alsobeen a part owner of an Alberta-based commodity brokerage specializing inagricultural risk management and has worked at the firm of Meyers NorrisPenny. He has served on the boards of the Canada Grains Council, the ManitobaInstitute of Agrologists, the Flax Council and the Winnipeg Chamber ofCommerce Agricultural Committee. Eric Sprott will act as Chairman of One Earth Farms. Mr. Sprott has over35 years of experience in the investment industry and currently acts asChairman of SRC and President and CEO of Sprott Inc. He is also the portfoliomanager at Sprott Asset Management Inc. for Sprott Hedge Fund L.P., SprottHedge Fund L.P. II, Sprott Offshore Fund, Sprott Canadian Equity Fund, SprottEnergy Fund, Sprott Bull/Bear RSP Fund and the Sprott Managed Accounts. Additional Financing for One Earth Farms One Earth Farms intends to initiate strategic industry partnerships,either through preferred supply relationships or preferred long-term salesagreements for its production. As well, One Earth Farms has engaged CormarkSecurities on a financial advisory basis to explore the raising of third partycapital for One Earth Farms from industry sources, credit providers and otherequity investors.