TORONTO, Feb. 10 /CNW/ - Sprott 2011 Corporation is pleased to announce
that Sprott 2011 Flow-Through Limited Partnership (the "Partnership")
has completed the first closing of its initial public offering of
limited partnership units. The Partnership sold 2,853,887 units for
gross proceeds of $71,347,175. The Partnership will have a second
closing on or about March 10, 2011. The price per unit is $25.00 and
the offering will be capped at $125 million.
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.
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 has
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 $57 million in assets.
The offering is being made through a syndicate of agents led by RBC
Capital Markets and including, CIBC World Markets Inc. TD Securities
Inc., BMO Capital Markets, National Bank Financial Inc., Canaccord
Genuity Corp., Dundee Securities Corporation, 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.
This offering is only made by prospectus. The prospectus contains
important detailed information about the securities being offered.
Copies of the prospectus may be obtained from one of the dealers noted
above. Investors should read the prospectus before making an investment
SOURCE Sprott Asset Management LP
For further information:
on Sprott Asset Management LP, please visit www.sprott.com or contact us at (416) 362-7172 or (866) 299-9906 or firstname.lastname@example.org.