TORONTO, April 1, 2019 /CNW/ - Sprott Inc.
("Sprott") (TSX:SII) announces that it has filed an
updated early warning report under applicable Canadian securities
laws in respect of Sprott Resource Holdings Inc. ("SRHI").
On November 7, 2018, 198,693 common
shares of SRHI ("Shares") held in a discretionary account
managed by Sprott Global Resource Investments Ltd. ("SGRIL")
were removed from such discretionary account (the "Share
Removal"). On November 27, 2018
in connection with the wind-down of Exploration Capital Partners
2008 Limited Partnership ("Exploration Capital LP"), an
investment fund managed by Resource Capital Investment Corp.
("RCIC"), an investment manager owned by Sprott, Exploration
Capital LP distributed an aggregate of 14,813,152 common share
purchase warrants ("Warrants") (exercisable for Shares on a
20-for-1 basis) (the "Warrant Distribution") held by it to
its limited partners either by way of a distribution in kind or a
reallocation to applicable non-discretionary accounts.
Pursuant to the Share Removal, SGRIL disposed of, or ceased to
have control over, 198,693 Shares, representing approximately 0.5%
of the issued and outstanding Shares on a non-diluted basis.
Pursuant to the Warrant Distribution, Exploration Capital LP
disposed of, or ceased to have control over, 14,813,152 Warrants
(exercisable for Shares on a 20-for-1 basis), representing
approximately 2.13% of the issued and outstanding Shares on a
partially-diluted basis assuming the exercise of such Warrants.
Immediately prior to the Share Removal, Sprott, Term Oil Inc.
("Term Oil"), a corporation controlled by Arthur Richards (Rick) Rule IV, Chairman of
Sprott US Holdings Inc., and SGRIL, RCIC and Sprott Asset
Management USA Inc., each an
investment manager owned by Sprott (collectively, the "Sprott
Managers"), collectively, beneficially owned or exercise
direction and control over 4,054,278 Shares and 53,993,529 Warrants
(exercisable for Shares on a 20-for-1 basis), representing
approximately 18.36% of the issued and outstanding Shares on a
partially diluted basis assuming exercise of such Warrants.
Immediately following completion of the Share Removal, Sprott,
Term Oil and the Sprott Managers, collectively, beneficially own or
exercise direction and control over 3,855,585 Shares and 53,993,529
Warrants (exercisable for Shares on a 20-for-1 basis), representing
approximately 17.82% of the issued and outstanding Shares on a
partially diluted basis assuming exercise of such Warrants.
Immediately prior the completion of the Warrant Distribution,
Sprott, Term Oil and the Sprott Managers, collectively,
beneficially own or exercise direction and control over 3,263,686
Shares and 53,993,529 Warrants (exercisable for Shares on a
20-for-1 basis), representing approximately 16.21% of the issued
and outstanding Shares on a partially diluted basis assuming
exercise of such Warrants.
Immediately following the completion of the Warrant
Distribution, Sprott, Term Oil and the Sprott Managers,
collectively, beneficially own or exercise direction and control
over 3,054,850 Shares and 39,180,377 Warrants (exercisable for
Shares on a 20-for-1 basis), representing approximately 13.91% of
the issued and outstanding Shares on a partially diluted basis
assuming exercise of such Warrants.
As of March 29, 2019, Sprott, Term
Oil and the Sprott Managers, collectively, beneficially own or
exercise direction and control over 2,802,786 Shares and 35,564,828
Warrants (exercisable for Shares on a 20-for-1 basis), representing
approximately 12.77% of the issued and outstanding Shares on a
partially diluted basis assuming exercise of such Warrants.
The Shares and Warrants were acquired for investment purposes.
Sprott has a long-term view of the investment and may acquire
additional securities of SRHI either on the open market or through
private acquisitions or sell the securities either on the open
market or through private dispositions in the future depending on
market conditions, reformulation of plans and/or other relevant
factors, provided that Sprott may, as announced by SRHI,
consult with SRHI in connection with the review announced by SRHI
on February 11, 2019. SRHI's head
office is at Suite 2600, South Tower, Royal Bank Plaza, 200 Bay
Street, Toronto, Ontario M5J
2J1.
A copy of Sprott's early warning report will appear on SHRI's
profile on SEDAR at www.sedar.com and may also be obtained by
calling Mr. Arthur Einav, General
Counsel, at (416) 362-7172.
About Sprott
Sprott is a global alternative asset manager with three primary
lines of business: Private Resources Investments; Exchange Listed
Products; and Alternative Investment Management. The Private
Resource business platform houses the Company's private
resource-focused asset management activities; the Exchange Listed
Products business platform houses the Company's closed-end physical
trusts and exchange traded funds; and the Alternative Asset
Management business platform houses the Company's full suite of
public mutual funds, alternative investment strategies and managed
accounts. Sprott Asset Management LP is the principal subsidiary of
Sprott Inc. and the manager of both the Exchange Listed Products
business line and the Alternative Investment Management business
line. For more information, please visit www.sprottinc.com.
SOURCE Sprott Inc.