Canadian investment firm Sprott Resource Corp announced plans on Friday to buy back up to 6.25 million of its common shares, saying the stock price does not reflect the value of its assets and prospects.

There were 82,283,224 shares of Sprott outstanding as of Thursday. The buyback represents about 10 percent of the unrestricted public float and about 7.6 percent of the total number of outstanding shares, Sprott said.

The buyback would total C$18.6 million ($17.2 million) if the shares were purchased at Thursday's closing price of C$2.98.

Shares of Sprott, which invests in the natural resources sector, reached a 52-week low of C$1.66 in late October and traded at C$3.76 a year ago, their 12-month high.

Sprott said it would start the normal course issuer bid on Aug. 31 and end it a year later or when the number of shares sought by the bid have been obtained. It may also terminate the bid when it deems the move appropriate.

SRC believes that its shares have been trading in a price range that does not adequately reflect the value of the shares in relation to SRC's assets and future prospects, the company said in a statement.

Sprott said the buyback could enhance shareholder value while representing an attractive investment for the company.

Sprott said an associate of a director intends to sell shares during the course of the bid, but no other director or senior officer, no person acting jointly or in concert with SRC and no person holding 10 percent or more of any shares of SRC intends to sell shares during the buyback.

Sprott has bought 8 million shares pursuant to a normal course issuer bid in the last 12 months at average cost of C$2.46 each, it said.

($1=$1.08 Canadian)

(Reporting by Andrea Hopkins; Editing by Lisa Von Ahn)