Sprott Resource Corp. - A Small Cap Speculation
Sprott Resources Corp SCP on Toronto
The recently announced $98 million dollar warrant deal will allow the Company to invest in several more junior plays to add to its coal, potash and gold investments.
Company Catalyst is Growth
The Company has proposed to raise $98 million dollars through the exercise of warrants. Unlike other small resource " investment / merchant banks " like Pinetree Capital ,SCP has only a few investments and these are large positions. Pinetree has more than a 100 small positions in small companies. PNP lives in the hole that one small investment will make a break out that will carry the rest. That strategy helps lift your stock price when the whole market is healthy and there is a lot of speculative money to chase your IPOs and spin-offs . Not such a great idea today.
Eric Sprott , founder of Sprott Asset Management is a leading Canadian resource investor and fund manager.The SCP management is the difference I have no doubt that SCP - with direction from Eric Sprott and Lundin Mining will have great opportunities presented to them. They will be able to chose from the best projects available - and they'll have the money to do the deals- as demonstrated with their coal position. I also have no doubt that the success is not a foregone certainty.