Sprott Inc. files early warning report in respect of Sprott Resource Holdings Inc.

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.