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Sprott Resource Corp. Reports 2008 Second Quarter Financial Results
TORONTO, Aug. 15 /CNW/ - (TSX: SCP) - Sprott Resource Corp. ("SRC") announced today its financial...
About this update from Winchester Equity Corporation
[{"type":"text","content":"\n\n\n\nTORONTO, Aug. 15 /CNW/ - (TSX: SCP) - Sprott Resource Corp. ("SRC")\nannounced today its financial results for the quarter ended June 30, 2008. The\nconsolidated financial statements and the related management's discussion and\nanalysis ("MD&A") can be found on SEDAR at www.sedar.com.\n\n\nFor the second quarter, net earnings were $6.96 million or $0.13 basic\nearnings per share ($0.11 fully diluted earnings per share). Net earnings\ninclude $4.99 million in equity earnings of PBS Coals Corporation ("PBS") and\n$3.17 million in gains on the sale of investments. Working capital ended the\nsecond quarter at $58.12 million, an increase of $24.98 million from the end\nof the previous quarter. The increase in working capital was a result of a\nwarrant incentive program that commenced during the second quarter and was\ncompleted subsequent to the end of the second quarter. The total proceeds\nresulting from the warrant incentive program will be fully reflected in the\nthird quarter's financial statements.\n\n\nThe second quarter included an additional investment of US$23,960,000 in\nPBS. This investment increased SRC's holdings of PBS shares to 44,194,538.\nSubsequent to the end of the quarter, SRC sold into escrow 17,050,000 PBS\nshares for gross proceeds of approximately $102,300,000. These proceeds have\nbeen placed into escrow and will be released from escrow following the\nsatisfaction of certain conditions, which are expected to be fulfilled by the\nend of August 2008.\n\n\nAlso of note in the second quarter was the acquisition, through a newly\nformed Ontario corporation ("Ontario Co"), of the outstanding shares of\nMantaro (BVI) Ltd., the company that indirectly holds the mineral rights\nrelating to the Mantaro Phosphate Project. Subsequent to the end of the second\nquarter, SRC announced that it would be amalgamating Ontario Co with Stonegate\nMinerals Ltd. ("Stonegate"), a private Ontario company. Stonegate will be\nproviding initial working capital for the project. The key principals of\nStonegate, Ian McDonald and Kerry Knoll, will lead the management of the\nproject.\n\n\n"The successful completion of the warrant incentive program and the sale\nof a portion of our PBS shares leaves us in a very strong financial position,"\nsaid Kevin Bambrough, CEO of...