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What fees does Sprott Resource Corp. pay to Sprott Consulting Limited Partnership?

April 26, 2017Consulting Corp fees limited partnership pay Resource Sprott

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What fees does Sprott Resource Corp. pay to Sprott Consulting Limited Partnership?

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We pay an annual management fee to SCLP equal to 2% of Sprott Resource Corp.’s Net Asset Value (as defined in the MSA) calculated and payable each calendar quarter based on the average month-end Net Asset Value of Sprott Resource Corp. during each calendar quarter. Depending on our profitability we may also pay at the end of the year an annual incentive fee to SCLP equal to 20% of: (a) the pre-tax profits of Sprott Resource Corp. for the period from January 1 to December 31, minus (b) the average month-end Net Asset Value (as defined in the MSA) of Sprott Resource Copr. from January 1 to December 31 multiplied by the percentage return of the Canadian 30-Year Generic Bond Index (Bloomberg Ticker: GCAN30YR Index) or any successor index for the same period (up to a maximum of 12%).