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.
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.
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.