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Sprott Resource Corp. announces intention to amalgamate its Mantaro Phosphate Project with Stonegate Minerals
-Transaction further supports development of project- TORONTO, July 15 /CNW/ - (TSX:SCP) - Sprott...
About this update from Winchester Equity Corporation
[{"type":"text","content":"\n\n\n\n-Transaction further supports development of project-\n\n\nTORONTO, July 15 /CNW/ - (TSX:SCP) - Sprott Resource Corp. ("SRC") today\nannounced that its wholly-owned subsidiary ("Holdco"), which indirectly holds\nSRC's interest in the Mantaro Phosphate Project, has signed a letter agreement\n(the "Agreement") with Stonegate Minerals Ltd. ("Stonegate") to amalgamate\nHoldco and Stonegate. The key principals of Stonegate, Ian McDonald and Kerry\nKnoll, will manage the amalgamated company ("Amalco") and work to develop the\nMantaro Phosphate Project. The amalgamation is subject to a definitive\namalgamation agreement as well as Stonegate and Holdco shareholder approval.\n\n\nCommenting on the transaction Kevin Bambrough, President and CEO of SRC,\nstated: "We are pleased that Ian, Kerry and the other Stonegate shareholders\nhave decided to buy into the Mantaro Phosphate Project. We remain very excited\nabout the project's prospects and are confident that Ian and Kerry, each of\nwhom has extensive experience and proven success in the mining sector, will be\nsuccessful in developing this project."\n\n\nMr. McDonald stated: "Kerry and I are both very impressed with the\npotential of the Mantaro Phosphate Project and look forward to working on its\ndevelopment".\n\n\nStonegate is a private Ontario corporation with working capital of\napproximately $5.3 million. Following the amalgamation and additional private\nplacements completed by Stonegate and Amalco, SRC will own approximately 79%\nof the shares of Amalco. Immediately following the amalgamation, Amalco will\nhave working capital of approximately $7.4 million.\n\n\nMr. McDonald was a founder and is currently Vice-Chairman of Thompson\nCreek Metals Company Inc., formerly Blue Pearl Mining Ltd. He held the\nposition of Chairman of the Company until January of 2008 and Chief Executive\nOfficer until December of 2006. In October 2006, Blue Pearl completed the\nacquisition of Thompson Creek Metals to become one of the world's largest\npublicly-traded molybdenum producers. Mr. McDonald also has the distinction of\nhaving co-founded Wheaton River Minerals Ltd. (now Goldcorp) in 1990.\n\n\nMr. Knoll was formerly Chairman of the Board of Glencairn Gold\nCorporation until October 2007 and, prior to that, he was Pre...