11:54 AM EST - Sprott Resource Corp. : announced that it has entered into an agreement to purchase, through a newly formed subsidiary or "Acquireco", all of the issued and outstanding common shares of Auriga Energy Inc., a private oil and gas company operating in Alberta by way of an exempt takeover bid. Acquireco has also completed a private placement by purchasing a total of 7.95 million common shares in the capital of Auriga at a price of $0.44 per share for aggregate proceeds of $3.5 million. Under the terms of the Acquisition Agreement, each shareholder of Auriga will receive 0.3 of an Acquireco common share and 0.0979 of an SCP common share for each Auriga Share held. On Closing, SCP will own 70% of Acquireco and the existing shareholders of Auriga will own 30% of Acquireco. A total of 13.85 million SRC common shares will be issued to Auriga shareholders in connection with the Acquisition. The Closing is expected to occur by the end of October. Sprott Resource Corp.
shares T.SCP are trading up $0.28 at $3.40.
