Pathway Mining 2009-II Flow-Through Limited Partnership

Pathway Asset Management

Pathway Asset Management

October 30, 2009 10:56 ET

Pathway Mining 2009-II Flow-Through Limited Partnership Initial Public Offering (Mining Flow-Through) Raised $4,999,530 on First Closing

TORONTO, ONTARIO--(Marketwire - Oct. 30, 2009) - Pathway Mining 2009-II Flow-Through Limited Partnership (the "Partnership" or "Pathway Mining 2009-II FTLP") reports that it has completed a first closing of its Initial Public Offering (the "Offering") and raised total gross proceeds of $4,999,530 on the sale of an aggregate of 499,953 limited partnership units at $10.00 per unit pursuant to a Final Prospectus dated October 20, 2009, which is available on SEDAR at www.sedar.com. Wellington West Capital Inc., HSBC Securities (Canada) Inc., Burgeonvest Bick Securities Limited, Canaccord Capital Corporation, Raymond James Ltd., Blackmont Capital Corporation, Dundee Securities Corporation, GMP Securities L.P., Research Capital Corporation, Integral Wealth Securities Limited and Argosy Securities Inc. acted as agents in the Offering, with Wellington West acting as the lead agent.

Following completion of the Offering, Pathway Mining 2009-II 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 and development 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 2009 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. (the "Portfolio Manager") to provide investment advisory services to the Partnership as Portfolio Manager, and William D.B. Koenig, CFA, CMA will be the individual portfolio manager at Pathway who will portfolio manage the Partnerships investments. 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 the Portfolio Manager 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, 2009, 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. The federal tax shelter identification number for the Partnership is TS 075408.

The second closing for Pathway Mining 2009-II FTLP is expected on November 25, 2009 (with settlement on November 27).

The following 11 prospectus offerings through Pathway Asset Management from 2006 all sold out and were oversubscribed: Pathway Mining 2006 Flow-Through Limited Partnership, Pathway Mining 2006-II Flow-Through Limited Partnership, Pathway Mining 2007 Flow-Through Limited Partnership, Pathway Mining 2007-II Flow-Through Limited Partnership, Pathway Mining 2007-III Flow-Through Limited Partnership, Pathway Quebec Mining 2007 Flow-Through Limited Partnership, Pathway Mining 2008 Flow-Through Limited Partnership, Pathway Quebec Mining 2008 Flow-Through Limited Partnership, Pathway Oil & Gas 2008 Flow-Through Limited Partnership, Pathway Quebec Mining 2008-II Flow-Through Limited Partnership and Pathway Quebec Mining 2009 Flow-Through Limited Partnership.

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 (Pathway 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. 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. Pathway Group's third offering – Pathway Mining 2006-II Flow-Through Limited Partnership – was also dissolved and rolled over 7 1/2 months ahead of schedule @ $10.09 per $10.00 unit. In other words, Pathway Asset Management has dissolved and rolled over each of its first 3 prospectus offerings way ahead of schedule, and above par. Additionally, earlier this year, Pathway Quebec Mining 2008-II Flow-Through Limited Partnership was dissolved and rolled over 19 months ahead of schedule @ $12.25 per $10.00 units.

Pathway Asset Management and its affiliates have raised $641,078,340 in their flow-through limited partnerships to date since their inception.

Pathway is a diversified financial products and asset management company headquartered in Toronto, with offices in Montreal, Vancouver, Calgary and Edmonton. Pathway mutual funds are distributed through licensed financial advisors and investment dealers.

Information on the Partnership can be obtained by visiting the website www.pathwayam.com or by contacting the General Partner by e-mail at jd@mineralfields.com, by telephone at (416) 665-9339 ext 221, toll-free at 1 (800) 339-9169 ext 221, or by facsimile at (416) 665-9331.

Contact Information

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