Sprott set to buy Toscana companies

Sprott Inc. has announced plans to acquire Toscana Capital Corporation and Toscana Energy Corporation.

Sprott will pay approximately $14 million in cash and common shares for the acquisition of the Toscana companies, with the possibility of up to an additional $5.25 million in common shares to be issued as additional consideration in three years.

At present, the managed entities of the Toscana companies have collective assets of approximately $161 million.

The acquisition remains subject to the satisfactory results of Sprott’s due diligence into Toscana, with the transaction still at arm’s length and subject to the regulatory and board approval.

Both parties will seek to close the transaction by the middle of the second quarter of 2012.

“In the Toscana Companies, we’re acquiring a leading team of energy specialists and lenders as well as a Calgary presence,” said Peter Grosskopf, CEO of Sprott. “We believe that Toscana’s energy lending business, managed working interest portfolio and flow through investment vehicles have significant growth potential.”

Toscana CEO Joseph Durante said, “We are excited to become part of the Sprott organization, a well-known natural resources investor. With the combination of our two companies, Sprott’s footprint in Calgary will only grow.”

Staff

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