Sprott 2011 Flow-Through Limited Partnership Announces Filing of Final Prospectus for Initial Public Offering

TORONTO, Jan. 31 /CNW/ - Sprott 2011 Corporation is pleased to announce that Sprott 2011 Flow-Through Limited Partnership (the "Partnership") has filed a final prospectus (the "Prospectus") in connection with its initial public offering of limited partnership units ("Units") in all of the provinces and territories of Canada. The price per unit is $25.00 and the offering will be capped at $125 million. The initial closing of the offering is expected on or about February 10, 2011, with subsequent closings expected to be completed by mid-March, 2011.

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's investment portfolio 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. Sprott 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 co-led by RBC Capital Markets and CIBC World Markets Inc. and including, 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 decision

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 invest@sprott.com.

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Sprott Asset Management LP

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