How To Invest in Rick Rule

September 19, 2017
By Dudley Pierce Baker

Dudley and Rick Rule – Casey Conference 2015


Rick Rule – You Want A Piece of Rick Rule?
or perhaps more correctly,
How to Invest in Rick Rule

If you have ever attended a resource conference in the United States or Canada you must know the name Rick Rule.

Rick is always front and center and a keynote speaker at virtually all of these events and has been for many years.

He stands alone with his knowledge, quick wit and humor, yet in a extremely professional matter.

If you do not know Rick Rule here is his background….

Rick Rule is the President and CEO Sprott U.S. Holdings Inc.

Sprott Global Resource Investments Ltd. is the nation’s preeminent junior resource-focused investment firm. Founded in 1993, Sprott Global is a wholly-owned subsidiary of Sprott, Inc. (SII-TSX), a Toronto-based public asset management firm.

Sprott Global is a U.S. broker-dealer focused on the natural resource sectors including precious metals, base metals, oil & gas, agriculture, water, and alternative energy.


TORONTO, Feb. 09, 2017 (GLOBE NEWSWIRE) — Sprott Resource Corp. (“SRC”) (TSX:SCP) and Adriana Resources Inc. (now renamed Sprott Resource Holdings Inc.) (“ADI” or the “Company”) (TSX-V:ADI) are pleased to announce the completion of the previously announced plan of arrangement (the “Arrangement”) pursuant to which ADI acquired 100% of the outstanding 96,672,102 SRC common shares and SRC became a wholly-owned subsidiary of ADI. Holders of common shares of SRC received 3.0 ADI common shares per common share of SRC held. ADI shareholders of record on the business day immediately prior to the closing date for the Arrangement were issued one-quarter of a common share purchase warrant in respect of each ADI share held, with each whole warrant (each, a “Warrant”) having a five-year term and a strike price of $0.333 per share (the “Warrant Distribution”).

In connection with the Arrangement, Sprott Inc. (“Sprott”), a fund managed by a subsidiary of Sprott, and Term Oil Inc. (a corporation controlled by Arthur Richards (Rick) Rule IV, Chairman of Sprott US Holdings Inc.) also invested, concurrently with the closing of the Arrangement, an aggregate of $15 million in the combined Company by purchasing a combination of ADI common shares and Warrants (collectively, the “Concurrent Private Placements”). The Arrangement, the Warrant Distribution, the Concurrent Private Placements are referred to collectively as the “Transaction”.

Immediately following completion of the Transaction, ADI changed its name to Sprott Resource Holdings Inc. (“SRHI”).

Sprott Resource Holdings (“SRHI”) is a publicly-listed corporation transitioning into a diversified holding company focused on holding businesses in the natural resource industry. Based in Toronto, SRHI is a member of the Sprott Group of Companies and is managed by a team of leading resource investment professionals. SRHI’s current holdings are concentrated in the mining, energy and agriculture sectors. SRHI takes an active role in the companies in which it invests and is committed to being a high-value partner to the management teams it backs and the co-investors who invest alongside SRHI.

RICK RULE – Chief Investment Officer and Vice Chairman

Mr. Rule is also the Founder of Global Resource Investments, President and CEO of Sprott US Holdings and a member of the Sprott Inc. Board of Directors. Currently, per, Rick owns approximately 7% of the outstanding common shares and stock warrants of SHRI.

Your Investment Opportunity
In my opinion, if you want a direct investment in the financial acumen of Rick Rule, I would suggest you invest in either the common shares of Sprott Resource Holdings Inc., TSX:SRHI or the stock warrants trading on SRHI with the symbol, TSX:SRHI.WT. The stock warrants have an expiration date of February 09, 2022 and an exercise price of C$0.33.

Approximate Cash – C$35 million
Recent Presentation

Recent Investment Portfolio

Current Prices
SHRI           C$0.16
SHRI.WT     C$0.07

So if you are a believer in the resource sector and Rick Rule, I think you would be well served to consider SRHI as a wonderful investment opportunity at today’s prices.

We are not investment advisors and investors should consult with their own financial advisors before buying any securities.

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