Sprott Resource Nearly Flat Again As One Portfolio Firm Opts to Stay Put, Another Looks at Options
Sprott Resource Corp. (SCP.TO) shares are nearly flat again at $4.08, giving back almost all of a 3% advance soon after the opening bell triggered by one of its larger minority holdings announcing plans to explore its strategic options and another of its portfolio companies deciding to remain a stand-alone concern.
Sprott currently holds 19.5% of the common stock, as well as nearly all of the convertible shares, of WestFire Energy (WFE.TO), trading about 12% higher today after disclosing the start of a strategic review at the oilpatch junior. Sprott would hold a 34% stake in WestFire, assuming conversion of all its non-voting shares.
Separately, Waseca Energy -- 81% owned by Sprott -- said it has decided to continue to pursue its existing business plan and operate independently after considering several corporate sale proposals as well as a corporate reorganization during a strategic review that began in mid-October.
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