TORONTO, March 19 /CNW/ - Middlefield Mutual Funds Limited (the "Mutual
Fund") is pleased to announce that it has completed the distribution to
Explorer II Resource Limited Partnership (the "Partnership") investors of its
Resource Class shares that resulted from the transfer of all of the assets of
the Partnership to the Mutual Fund on February 1, 2007. The Partnership was
dissolved on March 15, 2007 at which time the net asset value of the
Partnership was $23.67 per unit. The after-tax total return on money at risk
for the life of the Partnership was therefore approximately 23% for an Ontario
investor subject to the highest marginal tax rate.
The transfer was a tax-free exchange which means that no disposition
occurred and therefore no capital gains tax is payable as a result of the
rollover. Investors can continue to defer the capital gains tax liability that
arises upon disposition of their investment by retaining the shares of the
Mutual Fund, which offers nine asset Classes into which they can switch
tax-free. In addition to the Resource Class, also offered are Growth, Income
Plus, Equity Index, Index Income, Canadian Balanced, U.S. Equity, Short-Term
Income and Income and Growth Class. Investors should consult their investment
advisor to select the most suitable strategy for them based on their unique
personal needs and objectives.
Partnership investors can determine their Resource Class shareholdings by
multiplying the number of Units they held in the Partnership by 1.30435107.
Shares of Resource Class have now been credited to the accounts of beneficial
holders of Partnership Units. The adjusted cost base of the shares of the
Resource Class distributed to Partnership investors is $12.60278029 per share.
There are no fees charged on the rollover into the Mutual Fund, nor on
redemptions of Mutual Fund shares.
For further information:
For further information: www.middlefield.com; or contact the
undersigned: Nancy Tham, Senior Vice President, (416) 847-5349