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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