Business
Stonegate Agricom Arranges $7.5 Million Loan Facility with Sprott Resource Corp. to Advance Permitting at the Paris Hills Phosphate Project
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About this update from Winchester Equity Corporation
[{"type":"text","content":"\n\n\n\n\n\n/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR\n DISSEMINATION IN THE UNITED STATES/\n\n\nTORONTO, July 12, 2012 /CNW/ - Sprott Resource Corp. (\"SRC\" or the \"Company\") (TSX: SCP) jointly announced today with Stonegate Agricom Ltd.\n (\"Stonegate\" or the \"Company\") (TSX: ST) that they have signed a\n commitment letter whereby SRC, through Sprott Resource Partnership,\n will provide Stonegate with a $7.5 million loan facility (\"Facility\")\n for up to an 18-month term at an interest rate of five (5) percent per\n annum. The funds will be used for general working capital purposes,\n including Stonegate's environmental permitting activities at its Paris\n Hills Phosphate Project in Idaho.\n\n\n\"The provision of the Facility on terms acceptable to Stonegate\n demonstrates the strong commitment that SRC, our largest shareholder,\n has for the development of an underground phosphate mine at Paris\n Hills,\" said Mark Ashcroft, Stonegate's President and Chief Executive\n Officer.\n\n\n\"Prior to arranging this Facility, Stonegate estimated that it had\n sufficient cash to finance the completion of a bankable Feasibility\n Study at Paris Hills by the end of 2012 and corporate expenses for\n 2013, which is in keeping with the schedule for the project set out by\n the Company when it raised funds for the first time through an initial\n public offering in April 2010. However, in order to proceed with\n further development of the project beyond completion of the Feasibility\n Study, we require additional funds. Given the positive results of the\n Pre-Feasibility Study announced on March 26, 2012 and the encouraging\n response from potential customers, Stonegate has decided to move\n forward with additional financing through a loan facility at this time\n rather than wait until the Feasibility Study is completed.\n\n\n\"These additional funds will allow Stonegate to proceed this summer and\n fall with the hydrology studies and other preparatory work required to\n obtain environmental permits for the project. We expect to complete the\n permitting process in approximately two years. In the meantime,\n Stonegate intends to explore possible financing arrangements for the\n construction and operation of the planned mine,\" Mr. Ashcroft stated.\n\n\nSRC currently owns 46,912,000 Stonegate common shares, or 32....