Sprott Resource Corp. announces $27.17 million investment in Waseca Energy Inc.

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[{"type":"text","content":"\n\n\n\nTORONTO, Oct. 1 /CNW/ - (TSX: SCP) - Sprott Resource Corp. ("SRC") today\nannounced that it has purchased 45,289,000 common shares of Waseca Energy Inc.\n("Waseca") for $27,173,400 ($0.60 per share), as part of a larger private\nplacement of 52,199,589 common shares completed by Waseca (the "Private\nPlacement"). SRC holds 79.72% of the outstanding common shares of Waseca.\n\n\n"We are pleased to partner with an experienced oil and gas exploration\nand development team that has had historical success at growing production,"\nsaid Kevin Bambrough, SRC President & CEO. "We believe that with financing in\nplace, especially at a time when financing is not available for most, the\nWaseca team is well positioned to explore and develop its existing land base\nand add to it through additional acquisitions. We also have the ability to\nprovide additional capital to Waseca if larger, attractive acquisition\nopportunities arise."\n\n\nWaseca President and Chief Operating Officer, Michael Watson, commented,\n"We are extremely pleased to have SRC as our major shareholder, a firm whose\nexpertise as an investor in the resource sector is well recognized. We look\nforward to the challenge of delivering value to all of our shareholders."\n\n\nAbout Waseca Energy Inc.\n\n\nWaseca Energy Inc. is a private oil and gas company whose primary focus\nis heavy oil production from the Lloydminster area on the border of central\nAlberta and Saskatchewan. Waseca's principals average 33 years of technical\nand managerial experience. Prior to Waseca, the principals generated\nsignificant production growth in the Lloydminster area while employed at a\nmajor independent oil and gas company. Waseca currently owns four prospective\npetroleum and natural gas leases in the Lloydminster area. Funds from the\nPrivate Placement will be used to finance Waseca's exploration and development\nprogram as well as potential acquisitions.\n\n\nAbout Sprott Resource Corp.\n\n\nSRC is a Canadian based company, the primary purpose of which is to\ninvest, directly and indirectly, in natural resources. Through acquisitions,\njoint ventures and other investments, SRC seeks to provide its shareholders\nwith exposure to the natural resource sector for the purposes of capital\nappreciation and real wealth preserv...

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