Pathway Mining 2007-III Flow-Through Limited Partnership

Pathway Mining 2007-III Flow-Through Limited Partnership
Pathway Asset Management

Pathway Asset Management

November 02, 2007 14:07 ET

Pathway Mining 2007-III Flow-Through Limited Partnership: Initial Public Offering Sold Out (Mining Flow-Through) Raised $20,000,000

TORONTO, ONTARIO--(Marketwire - Nov. 2, 2007) - Pathway Mining 2007-III Flow-Through Limited Partnership (the "Partnership" or "Pathway Mining 2007-III FTLP")) reports that it has completed and sold out a first closing of its Initial Public Offering (the "Offering") and raised total gross proceeds of $20,000,000 on the sale of an aggregate of 2,000,000 limited partnership units at $10.00 per unit pursuant to a Final Prospectus dated October 11, 2007, which is available on SEDAR at www.sedar.com. Wellington West Capital Inc., HSBC Securities (Canada) Inc., Desjardins Securities Inc., Canaccord Capital Corporation, Burgeonvest Securities Limited, Research Capital Corporation, Argosy Securities Inc., and Integral Wealth Securities Limited acted as agents in the Offering, with Wellington West acting as the lead agent. Following completion of the Offering, Pathway Mining 2007-III Inc., the General Partner of the Partnership, will invest available funds of the Partnership primarily in flow-through shares of resource companies engaged in mineral exploration in Canada and listed on the TSX or the TSX Venture Exchange. The General Partner will invest the available funds such that Limited Partners will be entitled to claim certain deductions from income and investment tax credits for income tax purposes for the 2007 taxation year. The General Partner also plans to invest the available funds with a view to achieving capital appreciation of the Partnership's investments.

The General Partner retained Pathway Investment Counsel Inc. ("Pathway") to provide investment advisory services to the Partnership as Portfolio Manager. The General Partner also retained the geological and engineering consulting firm of Watts, Griffis and McOuat Limited ("WGM") as consultants to provide technical expertise, advice and due diligence services to Pathway generally in relation to the mining sector, and specifically in relation to the identification, review and negotiation of individual flow-through share investment opportunities for the Partnership. In addition, WGM will have a continuing role with the Partnership in monitoring the exploration activities of resource companies in which the Partnership has invested to ensure that those resource companies will be able to renounce Canadian Eligible Expenditures to the Partnership with an effective date of December 31, 2007, and to assist the Partnership in determining whether flow-through shares should continue to be held or sold. Horst Mueller of Mueller Behavioural Analytics will provide technical analysis in relation to the mineral sector to the Portfolio Manager. Finally, Ronald J. Wortel, P. Eng., MBA and Barbara Y. Thomae, P.Geo. who are employed as senior mining analysts by the Administrator (MineralFields Fund Management Inc.), will provide geological analysis through the Portfolio Manager.

Pathway's last four prospectus offerings - Pathway Mining 2006 Flow-Through Limited Partnership, Pathway Mining 2006-II Flow-Through Limited Partnership, Pathway Mining 2007 Flow-Through Limited Partnership, and Pathway Mining 2007-II Flow-Through Limited Partnership - all sold out and were oversubscribed.

Pathway Group's first offering - Pathway Mining 2005 Flow-Through Limited Partnership - which closed in late 2005, was dissolved 20 months ahead of schedule, on May 8, 2006, and rolled over into an RRSP-eligible mutual fund corporation (MineralFields/EnergyFields Multi Series Fund Inc.) to provide investors with early liquidity on a tax-deferred basis. At early dissolution, each $10 unit was worth $19.90, representing a pre-tax return of 99 %, and an after-tax return of 325.98 % before factoring in capital gains tax, and 227.13 % when capital gains tax is factored in (the after-tax returns are calculated in accordance with certain assumptions disclosed in the prospectus). Pathway Group's second offering - Pathway Mining 2006 Flow-Through Limited Partnership - was also dissolved and rolled over 16 months ahead of schedule @ $11.19 per $10.00 unit, with an after-tax return of 140.99 % before factoring in capital gains tax, and 85.00 % when capital gains tax is factored in (the after-tax returns are calculated in accordance with certain assumptions disclosed in the prospectus).

Pathway plans to build upon its solid performance and satisfy growing investor demand for its products by launching other prospectuses in 2008.

Information on the Partnership can be obtained by visiting the website www.pathwayam.com or by contacting the General Partner at (416) 665-9339, toll-free at 1 (800) 339-9169, by facsimile at (416) 665-9331 or by e-mail at jd@mineralfields.com.

Contact Information

  • Pathway Asset Management
    Imtiaz Hashmani
    CFO
    (416) 665-9339 x 229 or Toll Free 1-800-339-9169 x 229
    (416) 665-4772 (FAX)
    Website: www.pathwayam.com