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Wednesday, February 29, 2012

Sprott buys two Calgary resource investment firms, (TSE: SII.TO)

Canadian fund manager Sprott Inc has agreed to acquire two small Calgary-based resource investment firms for C$14 million in cash and stock as the Bay Street precious metals bull taps Western Canadian interests.Toronto-based Sprott, founded by Bay Street contrarian investor Eric Sprott and taken public in 2008, said it signed a letter of intent to purchase investment companies Toscana Capital Corporation and Toscana Energy Corporation.Sprott is one of Canada's most aggressive gold and silver investors and is in an expansion push at home and abroad that started with the acquisition of Global Resource Investments, Terra Resource Investment Management and Resource Capital Investments in September 2010."In the Toscana Companies, we are acquiring a leading team of energy specialists and lenders as well as a Calgary presence," said Sprott Chief Executive Peter Grosskopf. "We believe that each of Toscana's energy lending business, managed working interest portfolio and flow through investment vehicles have significant growth potential."

Sprott Inc. (Sprott) is an independent asset manager. Shares of SII remained unchanged at $7.04. In the past year, the shares have traded as low as $5.00 and as high as $9.96. On average, 57658 shares of SII.TO exchange hands on a given day and today's volume is recorded at 0.