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TORONTO, May 12 /CNW/ - (TSX: MLY) - Sprott Molybdenum Participation
Corporation (the "Corporation") is announcing its results for the quarter
ended March 31, 2009.
For the three months ended March 31, 2009, basic and diluted increase in
net assets from operations was $0.03 per common share. In dollar terms, net
assets from operations after taxes increased by $1 million, due to
appreciation of the remaining portfolio investments.
As at March 31, 2009 the Corporation's assets of $68.8 million consisted
of the following: $65.5 million or 95.11% in cash and short term money market
securities and $2.6 million or 3.82% in portfolio investments. Other assets
included prepaid expenses and an income tax recoverable.
Liabilities amounted to $0.1 million and included legal, accounting,
capital tax and other miscellaneous payables.
The Corporation did not incur any material expenses in the first quarter,
with the main expenses being general and administrative as well as legal fees.
The net asset value of the Corporation as at March 31, 2009 was $68.7
million or $1.74 per common share, as compared to $67.7 million or $1.72 per
common share as at December 31, 2008.
On January 9th, 2009, the Corporation announced that its Board of
Directors has determined that a distribution to shareholders of all or
substantially all of the assets of the Corporation would be in the best
interests of the Corporation and its shareholders. This was a very difficult
decision for both the Manager and the Board of Directors. It was based on the
Manager's unfavourable outlook for molybdenum and the underlying equities and
the desire to unlock shareholder value by reducing the stock's discount to net
During the first quarter, the Manager continued liquidating the remaining
Portfolio Investments and work on the logistical details of the distribution
of substantially all assets to the shareholders of the Corporation. The
distribution will require the approval of the shareholders of the Corporation.
As such, a meeting is expected to be scheduled no later than June 30, 2009. It
is expected that the distribution of the assets will be effected following the
About Sprott Molybdenum Participation Corporation
The Corporation is an investment holding company created with the goal of
achieving capital appreciation by investing in securities of private and
public companies that explore for, mine and/or process molybdenum and by
investing in, holding, selling and otherwise transacting in all commercial
forms of molybdenum.
For further information:
For further information: Investor Services at 1-888-362-7172