Sprott-backed Independence Contract Drilling registers for IPO

Independence Contract Drilling Inc, a portfolio company of Canadian private equity firm Sprott Resource Corp, has submitted a confidential registration to the U.S. Securities and Exchange Commission for a possible initial public offering of common shares. Based in Houston, Independence Contract Drilling is a vertically integrated premium land-drilling service provider. Sprott invested in the company in 2012 and currently owns a 31.7% interest. Sprott last month commenced a $67.7 million secondary offering for another portfolio company, Calgary-based Long Run Exploration Ltd (TSX: LRE).


Sprott Resource Corp. Announces Confidential Submission of Draft Registration Statement for Initial Public Offering by Independence Contract Drilling, Inc.

TORONTO, May 13, 2014 /CNW/ – Sprott Resource Corp. (“SRC” or “the Company”) (TSX: SCP) announced today that its investee company, Independence Contract Drilling, Inc. (“ICD”), has confidentially submitted a draft registration statement to the U.S. Securities and Exchange Commission for a possible initial public offering of shares of its common stock. The proposed offering is expected to commence subject to the review process of the U.S. Securities and Exchange Commission, and subject to market conditions and other conditions.

This announcement is being made in accordance with Rule 135 under the U.S. Securities Act of 1933. As required by Rule 135, this press release does not constitute an offer to sell or the solicitation of an offer to buy securities, and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.

Forward-Looking Information and Statements

This new release contains certain forward-looking information and statements (collectively referred to herein as “Forward-Looking Statements”) within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends” and similar expressions are intended to identify Forward-Looking Statements. In particular, but without limiting the forgoing, this news release contains Forward-Looking Statements pertaining to the proposed initial public offering by Independence Contract Drilling, Inc. (“ICD”). Forward-Looking Statements are based on a number of expectations or assumptions which have been used to develop such information and statements but which may prove to be incorrect, including, but not limited to the assumption that the market and services rates for land-based contract drilling services will be consistent with the current environment. Although Sprott Resource Corp. (“SRC”) believes the expectations and assumptions reflected in such Forward-Looking Statements are reasonable, undue reliance should not be placed on Forward-Looking Statements because SRC can give no assurance that such expectations and assumptions will prove to be correct. The Forward-Looking Statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and statements, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors, which may cause actual results or events to differ materially from those anticipated in such Forward-Looking Statements, including, without limitation: (i) adverse market conditions; (ii) ICD’s ability to complete the proposed initial public offering; (iii) the clearance by the relevant regulators of the regulatory filings of ICD relating to the proposed initial public offering; (iv) those risks listed under the heading “Risk Factors” in SRC’s annual information form dated March 25, 2014; and (v) other risks, which are beyond the control of SRC or its subsidiaries. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the Forward-Looking Statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the Forward-Looking Statements contained in this news release. The Forward-Looking Statements contained in this news release speak only as of the date of this news release, and SRC does not assume any obligation to publicly update or revise any of the included Forward-Looking Statements, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.

SOURCE Sprott Resource Corp.

For further information:
Glen Williams
Director of Communications
Sprott Resource Corp.
T: (416) 943-4394
E: gwilliams@sprott.com

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