Sprott Inc. announces friendly acquisition of Sprott Resource Lending Corp.

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[{"type":"text","content":"\n\n\n\n\n\nTORONTO, May 8, 2013 /CNW/ - Sprott Inc. (\"Sprott\") (TSX:SII) and Sprott\n Resource Lending Corp. (the \"Company\" or \"Sprott Resource Lending\")\n (TSX:SIL) (NYSE MKT:SILU) are pleased to announce that they have\n entered into a definitive agreement (the \"Arrangement Agreement\")\n pursuant to which Sprott will acquire, by way of a court-approved plan\n of arrangement under the Canada Business Corporations Act (\"CBCA\"), all of the issued and outstanding common shares of Sprott\n Resource Lending.\n\n\nPursuant to the terms of the Arrangement Agreement, each Sprott Resource\n Lending shareholder (other than Sprott) will receive 0.5 of a Sprott\n common share and C$0.15 in cash for each Sprott Resource Lending common\n share held, implying an offer of C$1.65 per share based on Sprott's\n closing price on the Toronto Stock Exchange (\"TSX\") on May 7, 2013. The\n offer represents approximately a 20.4% premium to the Company's 20-day\n volume weighted average price on the TSX for the period ending May 7,\n 2013 and a 11.5% premium to the Company's closing price on the TSX on\n May 7, 2013.\n\n\n\"This acquisition provides Sprott with more than C$220 million in new\n capital which will be used to seed and launch new initiatives, while\n continuing to grow its private lending business through a new lending\n partnership expected to launch later this year,\" said Jack Lee, Lead\n Director of Sprott. \"This transaction will both support Sprott's growth\n in international markets and provide the company with a strong balance\n sheet to pursue various growth opportunities.\"\n\n\n\"We are pleased to enter into this agreement with Sprott,\" said Murray\n Sinclair, Chairman of Sprott Resource Lending's Board of Directors.\n \"This transaction provides our shareholders with a premium to the\n current share price and gives them an opportunity to participate in the\n growth of a larger, more diversified company with significant upside to\n the resource sector.\"\n\n\nBased on the currently issued and outstanding shares of the Company as\n of the date of this announcement, the number of Sprott common shares to\n be issued as part of the consideration will be approximately 69 million\n shares, representing approximately 39.0% of Sprott's currently issued\n and outstanding shares on a non-diluted basis.\n\n\nThe transaction val...

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