Sprott Resource Lending Corp. Declares an Increased Dividend and Provides Business Update
TORONTO, ONTARIO--(Marketwire - Jan. 13, 2012) - Sprott Resource Lending Corp. (the "Company" or "Sprott Resource Lending") (TSX: SIL)(NYSE Amex:SILU) today reports that its Board of Directors approved an increase to the fourth quarter dividend to $0.015 per common share, which it notes is supported by cash flows from the continued growth of its resource loan portfolio.
As of December 31, 2011, Sprott Resource Lending had a resource loan portfolio of approximately $120 million, and held $77 million in cash and marketable bonds. The average cash interest received on outstanding loans during the year was approximately 11.5%, while management estimates that the average total rate of return including realized and unrealized bonus arrangements was approximately 16.5%. Peter Grosskopf, President and CEO stated, "We are pleased by the performance of our resource loan portfolio during our first full year of operations. Not only was the average rate of return within our expectations, but we have a high degree of confidence in each loan position despite a challenging year for the resource markets overall. Further, our pipeline continues to grow as the relative attractiveness of our capital solution becomes better known within the resource industry."
The Board of Directors has approved the payment of a quarterly dividend of $0.015 per common share, which is an increase from prior quarters and reflects the continued growth of the resource loan portfolio. The dividend of $0.015 per common share is for payment on February 10, 2012 to shareholders of record on January 27, 2012. The Company hereby notifies its shareholders that it will designate the full amount of such dividend as an "eligible dividend" for purposes of the Income Tax Act (Canada).
Under the Company's normal course issuer bid ("NCIB") previously announced on March 9, 2011, for 2011 and 2012 to-date, the Company has purchased 1,464,212 shares under the NCIB leaving the Company with common shares of 154,180,546 outstanding. Sprott Resource Lending plans to release its audited annual financial results in early March 2012.
About Sprott Resource Lending Corp.
Sprott Resource Lending specializes in bridge and mezzanine lending to precious and base metal mining, exploration and development companies and energy companies on a global basis. Headquartered in Toronto, the Company seeks to generate income from lending activities as well as the upside potential of bonus arrangements with borrowers generally tied to the underlying property or shares of the borrower.
Sprott Resource Lending (www.sprottlending.com) was founded by Quest Capital Corp. and Sprott Lending Consulting Limited Partnership. Sprott Lending Consulting LP is a wholly owned subsidiary of Sprott Inc., the parent of Sprott Asset Management LP (www.sprott.com), a leading Canadian independent money manager.
For more information about Sprott Resource Lending, please visit SEDAR (www.sedar.com).
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