Royal Utilities Income Fund

Royal Utilities Income Fund

May 11, 2006 15:22 ET

Royal Utilities Income Fund Announces Filing of Preliminary Prospectus

EDMONTON, ALBERTA--(CCNMatthews - May 11, 2006) -

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Royal Utilities Income Fund announced today that it has filed a preliminary prospectus with Canadian securities regulators to permit an initial public offering of its trust units.

Royal Utilities Income Fund is an unincorporated, open-ended, limited purpose trust established under the laws of Alberta. All of the outstanding units of the Fund are currently owned by Royal Utilities Partnership, an equal partnership between subsidiaries of Sherritt International Corporation and Ontario Teachers' Pension Plan.

The Fund indirectly holds all of the common shares of Prairie Mines and Royalty Ltd., the largest thermal coal producer in Canada. Prairie Mines owns and operates the Paintearth, Sheerness, Genesee (50% joint venture interest), Poplar River, Boundary Dam and Bienfait mines and operates the Highvale and Whitewood mines under contract. A total of 37 million tonnes of coal was produced by Prairie Mines in 2005.

Prairie Mines also holds a portfolio of mineral rights located in Alberta and Saskatchewan on which it earns royalties from the production of coal and potash.

Revenue at Prairie Mines is derived from two principal sources: the supply of thermal coal under long-term contracts with the major electric utilities in Alberta and Saskatchewan, and royalty payments received from certain utility customers and other parties based on coal and potash production.

RBC Capital Markets and National Bank Financial have been appointed co-lead managers for the offering.

The preliminary prospectus of the Fund is available on SEDAR at www.sedar.com.

Contact Information

  • Royal Utilities Income Fund
    Investor Relations
    (416) 934-7655