Sprott Resource Holdings Inc. Announces Short-term Tactical Investment
TORONTO, July 09, 2018 -- Sprott Resource Holdings Inc. (“SRHI”) (TSX:SRHI) is pleased to announce that it has provided a short-term financing of US$7.2 million, as part of a US$17.5 million senior secured credit facility (the “Facility”) to a private royalty company (“PrivCo”) to support their business plan. The remaining US$10.3 million will be funded by Natural Resource Income Investing Limited Partnership (“NRIILP”, a Sprott Inc. entity managed by Rick Rule), Term Oil Inc. (“Term Oil”, an entity owned by Rick Rule) and Sprott Resource Lending Corp. In addition, Mike Harrison, Managing Director of SRHI, is a Director of PrivCo. The Facility will mature on December 31, 2018 with the full amount due on maturity.
“This opportunity will allow us to use our treasury holdings to generate approximately US$625,000 of interest income while retaining equity exposure in a unique business,” said Steve Yuzpe, CEO of SRHI. “This investment highlights the power of the Sprott platform and our ability to tailor bespoke financing solutions for natural resource companies.”
SRHI views this as a short-term tactical investment, with the expectation of earning a strong cash yield and rate of return in a short period of time.
About Sprott Resource Holdings Inc.
SRHI acquires and grows a portfolio of metals and mining businesses. Based in Toronto, SRHI is part of the Sprott Group of Companies and seeks to deploy capital to businesses that demonstrate strong cash flow to provide our investors with exposure to attractive commodities. For more information about SRHI, please visit www.sprottresource.com.
Cautionary Statement Regarding Forward-Looking Information
Certain statements in this press release contain forward-looking information (collectively referred to herein as the "Forward-Looking Statements") within the meaning of applicable Canadian 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 (i) the investment will generate a superior short-term return on SRHI’s treasury holdings; (ii) the investment will earn a strong cash yield and rate of return in a short period of time; and (iii) expected interest income.
Although SRHI believes that the Forward-Looking Statements are reasonable, they are not guarantees of future results, performance or achievements. A number of factors or assumptions have been used to develop the Forward-Looking Statements, including that the effects of regulation and tax laws of governmental agencies will not materially change. Actual results, performance or achievements could vary materially from those expressed or implied by the Forward-Looking Statements should assumptions underlying the Forward-Looking Statements prove incorrect or should one or more risks or other factors materialize, including those risks disclosed in SRHI’s filings with Canadian securities regulators on SEDAR at www.sedar.com. The Forward-Looking Statements speak only as of the date hereof, unless otherwise specifically noted, and SRHI does not assume any obligation to publicly update any Forward-Looking Statements, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable Canadian securities laws.
For further information:
Glen Williams
Managing Director, Investor Relations
T: (416) 943-4394
E: gwilliams@sprott.com
