CGF Resource 2006 Flow-through Limited Partnership

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May 31, 2006 13:36 ET

CGF Resource 2006 Flow Through Limited Partnership Announced the First Closing of Its Initial Public Offering

CALGARY, ALBERTA--(CCNMatthews - May 31, 2006) - CGF Resource 2006 Flow Through Limited Partnership (the "Limited Partnership"), Citadel Diversified Investment Trust (TSX:CTD.UN), Citadel S-1 Income Trust Fund (TSX:SDL.UN), Citadel HYTES Fund (TSX:CHF.UN), Citadel SMaRT Fund (TSX:CRT.UN), MYDAS Fund (TSX:MYF.UN), Citadel Multi-Sector Income Fund (TSX:CMS.UN), Series S-1 Income Fund (TSX:SRC.UN), Citadel Income & Growth Fund (TSX:CIF.UN), Citadel Stable S-1 Income Fund (TSX:CSR.UN), Sustainable Production Energy Trust (SPU.UN), Energy Plus Income Trust (TSX:EPF.UN), Equal Weight Plus Fund (TSX:EQW.UN) and Income & Equity Index Participation Fund (TSX:IEP.UN) announced today that it has completed the first closing of its initial public offering at a price of $25.00 per unit on 453,375 partnership units for proceeds of $11,334,375. This offering represents an expansion of Citadel's traditional closed end fund business into the limited partnership flow through market.

The offering was made through a syndicate of agents co-led by CIBC World Markets, BMO Nesbitt Burns Inc. and TD Securities Inc. and includes National Bank Financial Inc., Scotia Capital Inc., Desjardins Securities Inc., HSBC Securities (Canada) Inc., Canaccord Capita Corporation, Raymond James Ltd., Blackmont Capital Inc., Wellington West Capital Inc., Bieber Securities, Dundee Securities Corporation, MGI Securities Inc., and Research Capital Corporation.

The Limited Partnership will continue the marketing and sale of its partnership units into June, 2006. The maximum number of partnership units to be offered is 1.4 million units for gross proceeds of a maximum of $35,000,000. It is anticipated that the second closing of the Limited Partnership's initial public offering will occur in late June of 2006.

The Limited Partnership's objective is to provide its limited partners with a tax-assisted investment in a diversified portfolio of equity securities of Resource Companies. CGF Resource 2006 Flow Through Limited Partnership will have a diversified portfolio of flow through common shares issued by oil and gas, mining and/or renewable energy companies.

The Limited Partnership will be managed by Michael Waring of Galileo Equity Management Inc. Mr. Waring has more than 20 years of experience managing oil and gas and natural resource portfolios. This is Galileo's third mandate from the Citadel Group of Funds. In addition to the Limited Partnership, the Galileo team currently manages Citadel's Energy Plus Income Trust and Sustainable
Production Energy Trust.

It is anticipated that the Limited Partnership's portfolio will be comprised of oil and gas and mining stocks with an emphasis on oil and gas. Mr. Waring estimates that the weighting between oil and gas and mining will likely be a 70/30 ratio, and anticipates having the Limited Partnership fully invested by December 31, 2006. "The limited size of the Limited Partnership's portfolio will allow us to be highly selective in the purchase of the flow through shares, with a focus on quality and growth potential." said Mr. Waring.

The net assets of the Limited Partnership are expected to be exchanged through a tax-free rollover for shares of a newly-created Citadel Resource Fund which will be distributed to the Limited Partners on or about September 30, 2008.

The Citadel Group of Funds is a group of publicly traded income funds, each with a different set of investment guidelines designed to provide unitholders with high monthly distributions in a tax efficient manner. Citadel currently has approximately $3 Billion in assets under administration distributed over fourteen funds which are managed by leading investment management firms including Bloom Investment Counsel, Inc., Shaunessy & Company Ltd. and Galileo Equity Management Inc.

Contact Information

  • CGF Resource 2006 Flow Through Limited Partnership
    Joe MacDonald
    Executive Vice President, Sales and Marketing
    1-877-261-9674
    Website: www.citadelfunds.com