Stonegate Agricom to Issue Common Shares to Sprott Resource Corp. for Debt

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[{"type":"text","content":"\n\n\n\n\n\nTORONTO, April 29, 2013 /CNW/ - Sprott Resource Corp. (\"SRC\") (TSX: SCP)\n and Stonegate Agricom Ltd. (\"Stonegate\") (TSX: ST) today jointly\n announced that they have reached an agreement for Stonegate to acquire\n SRC's fully drawn $7.5 million loan facility for 11,538,462 Stonegate\n common shares at a price of $0.65 per share. The proposed transaction\n is expected to close by May 7, 2013.\n\n\nThe number of Stonegate outstanding shares will increase to 155,909,371\n and SRC's ownership of Stonegate shares will increase to 58,450,462, or\n 37.5% of the outstanding shares, from the current level of 46,912,000,\n or 32.5% of the outstanding shares. The proposed transaction will be\n completed as a private placement to an \"accredited investor\" under\n applicable securities and is subject to the approval of the Toronto\n Stock Exchange (TSX).\n\n\n\"We welcome the continuing financial support of SRC, our largest\n shareholder. This transaction will eliminate the security and debt\n covenants associated with the loan and allow us the freedom to pursue a\n full range of financing options required to acquire the mining\n equipment fleet and to construct and commence operation of the proposed\n underground mine at our Paris Hills phosphate property in Idaho,\" said\n Mark Ashcroft, Stonegate's President and Chief Executive Officer.\n\n\nSRC holds the Stonegate common shares for investment purposes and does\n not at this time intend to acquire ownership of, or control over,\n additional securities of Stonegate. SRC will review its holdings on a\n continuing basis and such holdings may be increased or decreased in the\n future.\n\n\nAbout Stonegate Agricom\nStonegate Agricom, which is actively engaged in acquiring and developing\n agricultural nutrient projects, is currently focused on the development\n of two potentially world-class, long-life phosphate deposits, the Paris\n Hills Phosphate Project located in Idaho and the Mantaro Phosphate\n Project located in Peru. The Company is confident that the two deposits\n have sufficient size and grade to become strategic, cost-effective\n sources of phosphate supply for major fertilizer producers. More\n information is available at www.stonegateagricom.com.\n\n\nAbout Sprott Resource Corp.\nSRC is a Canadian-based company, the primary purpose of which is to\n invest and op...

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