Business
Sprott Resource Corp. announces initial public offering by Stonegate Agricom Ltd.
Sprott Resource Corp. announces initial public offering by Stonegate Agricom Ltd.
About this update from Winchester Equity Corporation
[{"type":"text","content":"\n\n\n\nTORONTO, Mar. 16, 2010 (Canada NewsWire Group) -- /CNW/ -- (TSX: SCP) - Sprott Resource Corp. (\"SRC\") announced today that Stonegate Agricom Ltd. (\"Stonegate\"), approximately 73% owned by SRC on an undiluted basis, has filed a preliminary prospectus with the securities regulatory authorities in each of the provinces of Canada, other than Quebec, in respect of an initial public offering of units (the \"Units\") of Stonegate (the \"Offering\"). Each Unit will consist of one common share of Stonegate and one-half of one common share purchase warrant. The number of Units offered and the price per Unit, as well as the terms of the common share purchase warrants, will be determined in the context of the market prior to the filing of the final prospectus. The Offering is being made through a syndicate of underwriters led by GMP Securities L.P. and including BMO Capital Markets, Canaccord Financial Ltd., Wellington West Capital Markets Inc., CIBC World Markets Inc., Dahlman Rose & Company, LLC, Global Maxfin Capital Inc. and Toll Cross Securities Inc.Stonegate intends to use the proceeds from the Offering to explore and develop Stonegate's Mantaro phosphate project in Peru and Stonegate's Paris Hills phosphate project in Idaho and for general corporate and working capital purposes.The preliminary prospectus has not yet become final for the purpose of a distribution of securities to the public. This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale or any acceptance of an offer to buy the Units in any province of Canada prior to the time a receipt for the final prospectus or other authorization is obtained from the securities regulatory authorities in such province. A copy of the preliminary prospectus is available on SEDAR at www.sedar.com under Stonegate's profile.Completion of the Offering is subject to and conditional upon the receipt of all necessary approvals, including regulatory approvals. The completion of the Offering would likely result in SRC's ownership interest in Stonegate being diluted.The offer and sale of the securities referred to in this press release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the \"U.S. Securities Act\"), and may not be offered or sold in the United States or t...