Sprott Inc. Announces Letter of Intent for the Acquisition of Toscana Capital Corporation and Toscana Energy Corporation

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[{"type":"text","content":"\n\n\n\n\n\nTORONTO, Feb. 29, 2012 /CNW/ - Sprott Inc. (TSX:SII) (\"Sprott\") today announced the signing of a letter of intent (the \"LOI\") reflecting an agreement in principle to acquire Toscana Capital\n Corporation and Toscana Energy Corporation (collectively, the \"Toscana Companies\"). Upon closing of the proposed transaction, Sprott will pay\n approximately $14 million in cash and common shares of Sprott in\n consideration for the acquisition of the Toscana Companies, with the\n possibility of up to an additional approximately $5.25 million in\n common shares of Sprott to be issued as additional consideration in\n three years upon the attainment of certain financial performance\n hurdles (\"Earn-out Shares\").  As at the date hereof, the Toscana Companies' managed entities have\n aggregate assets of approximately $161 million.\n\n\nThe transaction is subject to, among other things, satisfactory results\n of due diligence investigations of the Toscana Companies and the\n negotiation of definitive agreements. The transaction is an arm's\n length transaction and is subject to the approval of all applicable\n regulatory authorities, including the Toronto Stock Exchange, as well\n as other third parties, as necessary. In addition, the transaction\n remains subject to approval by Sprott's board of directors. The parties will seek to close the transaction by the middle of the\n second quarter of 2012.\n\n\nThe transaction is expected to provide benefits across the Sprott\n organization through the sharing of investment ideas, deal origination,\n the development of new products, and by leveraging Toscana's and\n Sprott's products and brands in the oil and gas sector.\n\n\n\"In the Toscana Companies, we are acquiring a leading team of energy\n specialists and lenders as well as a Calgary presence,\" said Peter\n Grosskopf, Chief Executive Officer of Sprott. \"We believe that each of\n Toscana's energy lending business, managed working interest portfolio\n and flow through investment vehicles have significant growth\n potential.  We look forward to working with the team to enhance the\n available investment opportunities and products for our combined\n clients.\"\n\n\n\"We are excited to become part of the Sprott organization. Sprott is a\n well-known natural resources investor and with the combination of our\n two compa...

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