/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/ TORONTO, Nov. 15 /CNW/ - (TSX: SCP) - Sprott Resource Corp. ("SRC") is pleased to announce that it has signed an agreement (the "Agreement") with Paragon Minerals Corporation ("Paragon" PGR.V) under which SRC has the option to earn up to a 70% interest in the mineral licenses comprising Paragon's JBP - Appleton Linear Property located in the Province of Newfoundland and Labrador (the "Mineral Licenses") through the exercise of three options, and, thereafter participate with Paragon for the purpose of further exploration and other related work on the Mineral Licenses and, if warranted, development and exploitation of the Mineral Licenses. Under the terms of the Agreement, in order to maintain the first option in good standing and earn a 55% interest in the Mineral Licenses, SRC is required to, among other things:(i) fund a total of $2,125,000 of work costs, or $2,375,000 of work costs if Paragon elects to contribute $125,000 of work costs in the first year, over a period of four (4) years from November 15, 2007 (the "Effective Date"), $375,000 of which is a firm commitment and payable before the end of the first year following the Effective Date; and (ii) make a total of $250,000 in cash payments to Paragon over a period of three (3) years from the Effective Date, $25,000 of which is a firm commitment and payable within five (5) days of the Effective Date.In order to earn an additional 10% interest in the Mineral Licenses following the exercise of the first option, SRC would be required to, among other things, make a cash payment of $200,000 to Paragon upon electing to earn the second option and pay for the completion of a feasibility study on or before the date that is eight (8) years after the Effective Date. The feasibility study would be completed by the joint venture established by the parties following the exercise of the first option. In order to earn an additional 5% interest in the Mineral Licenses following the exercise of the second option, SRC would be required to, among other things, pay for the joint venture's costs incurred in connection with the completion of a positive production decision with arranged financing, which would have to be completed on or before the date that is ten (10) years after the Effective Date. TSX has confirmed to SRC that the JBP - Appleton Linear Property, and the National Instrument 43-101 technical report prepared in respect of the JBP - Appleton Linear Property, meet the requirements under section 314(b) of the TSX Company Manual. As such, it is anticipated that the signing of this Agreement will enable SRC to meet its TSX listing requirements. "We are pleased to be entering into this agreement with Paragon and look forward to working with its exploration team" states Kevin Bambrough, President and CEO of SRC. "This agreement exemplifies part of our strategy, which is to obtain optionality on resource properties." About Sprott Resource Corp. SRC is a Canadian based company. The primary purpose of the Corporation is to invest, directly and indirectly, in natural resources. Through acquisitions, joint ventures and other investments, SRC seeks to provide its shareholders with exposure to the natural resource sector for the purposes of capital appreciation and real wealth preservation. The Corporation is well positioned to draw upon the considerable experience and expertise of both its Board of Directors and Sprott Consulting Ltd. (SCL), a wholly-owned subsidiary of Sprott Asset Management Inc. (SAM). Pursuant to a management services agreement between SCL and SRC, SCL provides day-to-day business management for SRC as well as other management and administrative services. Forward Looking Statements Certain statements regarding SRC, including management's assessment of future plans, may constitute forward-looking statements under applicable securities laws and necessarily involve risk. SRC's actual results or achievements could differ materially from those expressed in, or implied by, the forward-looking statements. No assurance can be given that any events anticipated by the forward-looking statements will occur. These forward-looking statements, which are based on management's current expectations, are made as at the date of this news release. SRC does not undertake any obligation to publicly update or revise any of these forward-looking statements, except as required by applicable securities laws.
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