Sprott 2011 Flow-Through Limited Partnership Completes $90.7 Million IPO
March 10 2011 - 3:37PM
PR Newswire (Canada)
TORONTO, March 10 /CNW/ -- TORONTO, March 10 /CNW/ - Sprott 2011
Corporation is pleased to announce that Sprott 2011 Flow-Through
Limited Partnership (the "Partnership") has completed the second
and final closing of its initial public offering of limited
partnership units. The Partnership raised $19,325,475 on the sale
of 773,019 units at $25.00 per unit for aggregate total gross
proceeds raised from the offering of $90,672,650. "We are extremely
pleased with the success of this offering, as we continue to build
out our Flow-Through franchise," said James Fox, President of
Sprott Asset Management. "We raised approximately $51 million
through our first Flow-Through offering in 2010 and the almost 80%
increase in the size of Sprott 2011 Flow-Through Limited
Partnership illustrates the traction that we are gaining in this
market. We are pleased to be able to offer this effective tax
reduction strategy to our investors and look forward to continuing
to grow this product line in the future." Investment Objective of
the Partnership The Partnership's investment objective is to
provide for a tax-assisted investment in a diversified portfolio of
flow-through shares of resource issuers with a view to achieving
capital appreciation and significant tax benefits for limited
partners. Attractive Tax-reduction Benefits Flow-through
partnerships are one of the most effective tax reduction strategies
that remain available to Canadians. Sprott Asset Management LP
("Sprott"), the manager of the Partnership, anticipates that
investors purchasing Units of the Partnership will be eligible to
receive a tax deduction in 2011 that is approximately 100% of the
amount invested in the Partnership, based on certain assumptions
set forth in the prospectus. Resource Expertise The Partnership
will be managed by Sprott, an independent asset management company
that is dedicated to achieving superior returns for its clients
over the long term. Portfolio managers Allan Jacobs and Eric
Nuttall will co-manage the Partnership and will be supported by
Eric Sprott, Charles Oliver and Rick Rule. As at December 31, 2010,
Sprott had $8.5 billion in assets under management in various
mutual funds and hedge funds, including approximately $8.2 billion
dedicated to investments in natural resources. In 2010 alone,
Sprott invested, on behalf of its funds on a private placement
basis, in approximately 244 resource issues, investing a total of
approximately $408 million. The Manager also manages the Sprott
2010 Flow-Through Limited Partnership which has approximately $61
million in assets as at February 28, 2011. Agents The offering was
made through a syndicate of agents led by RBC Capital Markets and
which included, CIBC World Markets Inc., TD Securities Inc., BMO
Capital Markets, National Bank Financial Inc., Canaccord Genuity
Corp., Dundee Securities Ltd., HSBC Securities (Canada) Inc.,
Scotia Capital Inc., GMP Securities L.P., Wellington West Capital
Markets Inc., Desjardins Securities Inc., Macquarie Private Wealth
Inc. and Manulife Securities Incorporated. Certain statements
included in this news release constitute forward-looking
statements, including, but not limited to, those identified by the
expressions ''expect,'' ''intend,'' "will" and similar expressions
to the extent that they relate to the Partnership. The
forward-looking statements are not historical facts but reflect the
General Partner's and Sprott's current expectations regarding
future results or events. These forward-looking statements are
subject to a number of risks and uncertainties that could cause
actual results or events to differ materially from current
expectations. Although the General Partner and Sprott believe that
the assumptions inherent in the forward-looking statements are
reasonable, forward-looking statements are not guarantees of future
performance and, accordingly, readers are cautioned not to place
undue reliance on such statements due to the inherent uncertainty
therein. Neither the General Partner nor Sprott undertake any
obligation to update publicly or otherwise revise any
forward-looking statement or information whether as a result of new
information, future events or other such factors which affect this
information, except as required by law. To view this news release
in HTML formatting, please use the following URL:
http://www.newswire.ca/en/releases/archive/March2011/10/c9885.html
p align="left"For more information on Sprott Asset Management LP,
please visit a href="http://www.sprott.com/"www.sprott.com/a or
contact us at (416) 362-7172 or (866) 299-9906 or a
href="mailto:invest@sprott.com"invest@sprott.com/a./p
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