Sprott Resource Corp. announces signing of lock-up agreement in connection with proposed takeover of PBS Coals Limited

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[{"type":"text","content":"\n\n\n\nTORONTO, Aug. 22 /CNW/ - Sprott Resource Corp. ("SRC") announced today\nthat it has signed a lock-up agreement with Severstal Resources, the mining\ndivision of OAO Severstal ("Severstal") under which it has agreed to tender\ninto a takeover bid (the "Offer") to be made by Severstal for all the\noutstanding shares of PBS Coals Limited, the resulting issuer of the proposed\nbusiness combination between PBS Coals Corporation and Penfold Capital\nAcquisition Corporation (the "Business Combination"). The Offer will be made\nat C$8.30 per share of PBS Coals Limited.\n\n\nAssuming the proposed Business Combination is completed, SRC will own\napproximately 27.14 million shares of PBS Coals Limited. If the proposed\ntake-over were completed, SRC would receive proceeds of approximately C$225.3\nmillion. These proceeds would be in addition to proceeds (net of commissions)\nof approximately C$100 million that SRC will receive from its completed sale\ninto escrow of 17.05 million shares of PBS Coals Corporation (see press\nrelease dated July 31, 2008).\n\n\nThe Offer is subject to a number of conditions, including (i) receipt of\nall required regulatory and Court approvals in respect of the Offer; (ii) the\ncompletion of the Business Combination; and (iii) valid deposit of at least 66\n2/3% of the outstanding shares of PBS Coals Limited (on a fully diluted\nbasis). It is expected that the Offer will be made by September 5, 2008 (but\nin no event later than September 30, 2008).\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 preservation. SRC is well positioned to draw upon\nthe considerable experience and expertise of both its Board of Directors and\nSprott Consulting Limited Partnership (SCLP), of which Sprott Asset Management\nInc. is the sole limited partner. Pursuant to a management services agreement\nbetween SCLP and SRC, SCLP provides day-to-day business management for SRC as\nwell as other management and administrative services.\n\n\nForward Looking Statements\n\n\nCertain s...

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