Sprott Resource Corp. Announces 2013 Second Quarter Results

About this update from Winchester Equity Corporation

[{"type":"text","content":"\n\n\n\nTORONTO, Aug. 14, 2013 /CNW/ - (TSX: SCP) - Sprott Resource Corp. (\"SRC\" or the \"Company\") today announced\n financial results for the three and six-months ended June 30, 2013.\n\n\n\"The second quarter was a challenging period for the Company as the\n sharp sell off in precious metals had a significant negative impact on\n the value of our physical gold bullion holdings,\" said Kevin Bambrough,\n Chief Executive Officer of SRC. \"As a result, our Board of Directors\n has elected to cancel our dividend policy and dividend reinvestment\n plan and to cease paying monthly dividends in order to preserve capital\n and protect our ability to continue effectively executing our business\n plan. This was a difficult decision but we believe that the long-term\n interests of our shareholders will be best served by SRC maintaining\n sufficient financial flexibility to acquire and dispose of assets at\n the optimal times in the commodities cycle.\"\n\n\n\"We are bullish on gold over the long term, but recognize that if the\n resource markets continue to decline in the short term, SRC may elect\n to sell the gold bullion as a source of liquidity. SRC remains\n committed to the practice of enhancing shareholder value when\n management believes that the market price does not reflect the\n underlying asset value of the business,\" said Mr. Bambrough.\n\n\nSRC intends to apply in September 2013 to the Toronto Stock Exchange\n (the \"TSX\") to commence a normal course issuer bid (the \"New Bid\") to\n repurchase and cancel additional Shares.  Purchases under the New Bid\n will be made for cancellation through the facilities of the TSX or\n other Canadian market places at the prevailing market price of the\n Shares.\n\n\n\"We continue to be pleased with the progress of our investee companies\n and believe the portfolio is well-positioned in sectors that are poised\n for significant recoveries over the long term,\" continued Mr.\n Bambrough. \"The outlook for natural gas, in particular, is positive and\n we have positioned ourselves well to benefit from its recovery through\n investments in businesses like Independence Contract Drilling, Inc.\n (\"ICD\") and Long Run Exploration Ltd. (\"Long Run\"), which has\n significant oil and natural gas assets in Alberta.\"\n\n\nSRC Equity attributable to shareholders as at June 30, 2013 and t...

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