Sprott to merge Growth, Small Cap funds

Sprott Asset Management has proposed the merger of its Sprott Growth Fund into Sprott Small Cap Equity Fund, saying investors would benefits from the creation a more cost-efficient fund.

The company has closed the growth fund to new money immediately.

Allan Jacobs and Peter Imhof are expected to remain as managers of the Small Cap Equity fund after the merger.

Unitholder approval will be sought at a special meeting to be held on or about August 23, 2011, and the company will mail out a proxy voting package in July. If approved, the merger would be effective on or about August 29, 2011.

Holders of units of each series of the Growth fund would receive units of the equivalent series of Sprott Small Cap Equity Fund, determined on a dollar-for-dollar basis.

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