Sprott Resource Corp. (TSX: T.SCP, Stock Forum) said Monday that, through Sprott Resource Partnership, it holds 9.4 million common shares of Virginia Energy Resources Inc. (TSX: V.VUI, Stock Forum).
Based on information contained in documents publically filed by Virginia Energy, this represents approximately 16.5% of the total issued and outstanding common shares of Virginia Energy, the company said in a press release.
Pursuant to Virginia Energy's previously announced private placement, which closed on January 25, 2013, SRP acquired ownership of 2.8 million shares at a purchase price of $0.42 per share pursuant to a subscription agreement dated January 14, 2013.
SRP acquired the shares for investment purposes. SRP may purchase or sell securities of Virginia Energy in the future on the open market, in private transactions or otherwise, depending on market conditions and other factors material to the investment decisions of SRP.
Sprott rose 2% to $4.64, leaving the company with a market cap of $475 million, based on 102.4 million shares outstanding. The 52-week range is $4.71 and $3.50.