Front Street Resource Performance Fund Ltd.

Front Street Resource Performance Fund Ltd.

September 10, 2007 13:26 ET

Front Street Resource Performance Fund Announces Additional Offering and Exchange Offer

TORONTO, ONTARIO--(Marketwire - Sept. 10, 2007) - Front Street Resource Performance Fund Ltd. (TSX:FRE.UN) is pleased to announce that a preliminary prospectus has been filed with the securities regulatory authorities in each of the provinces and territories of Canada with respect to an additional offering of Units. Each Unit consists of one equity share of the Fund and one full equity share purchase warrant and will be issued at the Net Asset Value per Unit most recently circulated prior to the filing of the final prospectus. The Manager of the Fund will pay the agents' fee and all expenses of the offering.

The Fund's investment objective is to maximize capital appreciation by investing on a long/short basis in small and medium-sized business entities in a range of natural resource sector industries, including base and precious metal mining and exploration, and energy-related industries.

The Fund's portfolio will consist primarily of equity and equity-related securities, although the Fund may also invest in preferred shares and corporate and government debt securities (which debt securities may be unrated or rated below investment grade).

Prospective purchasers may acquire Units by cash payments or by an exchange of any of the Eligible Securities listed below, at the applicable Exchange Ratio described below. Prospective purchasers intending to utilize the Exchange Option have to ensure that an exchange election is received by Computershare Trust Company of Canada through CDS Clearing and Depository Services Inc. ("CDS") prior to 5:00 p.m. (Toronto Time) on September 26, 2007. Such book-entry deposits have to be made by a CDS participant, who may have an earlier deadline.

The number of Units issuable for the Eligible Securities of an Exchange Issuer will be determined by dividing (i) the volume weighted average trading price of the Eligible Securities of such Exchange Issuer on the TSX during the three consecutive trading days ended on September 26, 2007 as adjusted to reflect distributions declared by such Exchange Issuer that will not be received by the Fund; by (ii) the issue price of a Unit issue. The Exchange Ratio will be rounded down to four decimal places.

Exchange Issuers

Aber Diamond Corporation Labrador Iron Ore Royalty Income Fund
Abitibi-Consolidated Inc Lundin Mining Corporation
Addax Petroleum Corporation Major Drilling Group International Inc.
Agnico-Eagle Mines Ltd. Meridian Gold Inc.
Agrium Inc. Methanex Corporation
Alcan Inc. Miramar Mining Corporation
Anvil Mining Limited Nexen Inc.
ARC Energy Trust Niko Resources Ltd.
Barrick Gold Corporation Northern Orion Resources Inc.
Baytex Energy Trust Nova Chemicals Corporation
Bonavista Energy Trust NovaGold Resources Inc.
Canadian Natural Resources Limited Oilexco Incorporated
Canadian Oil Sands Trust OPTI Canada Inc.
Canetic Resources Trust PAN American Silver Corp.
CCS Income Trust Pengrowth Energy Trust
CHC Helicopter Corporation Penn West Energy Trust
Compton Petroleum Corporation Petrobank Energy and Resources Ltd.
Crescent Point Energy Trust Petro-Canada
Duvernay Oil Corp. Peyto Energy Trust
Eastern Platinum Limited Potash Corporation of Saskatchewan Inc.
Eldorado Gold Corporation Precision Drilling Trust
EnCana Corporation PrimeWest Energy Trust
Enerplus Resources Fund ShawCor Ltd.
Ensign Energy Services Inc. Sherritt International Corporation
Equinox Minerals Limited Shore Gold Inc.
First Quantum Minerals Ltd. Silver Wheaton Corp.
FNX Mining Company Inc. Silvercorp Metals Inc.
Fording Canadian Coal Trust Sino-Forest Corporation
Galleon Energy Inc. Suncor Energy Inc.
Gammon Gold Inc. Talisman Energy Inc.
Gerdau AmeriSteel Corporation Teck Cominco Limited
Goldcorp Inc. Thompson Creek Metals Company Inc.
Harvest Energy Trust Trican Well Service Ltd.
HudBay Minerals Inc. UTS Energy Corporation
Husky Energy Inc. Vermilion Energy Trust
IAMGOLD Corporation Western Oil Sands, Inc.
Imperial Oil Ltd. Yamana Gold Inc.
Inmet Mining Corporation
InterOil Corporation
Ivanhoe Mines Ltd.
Kinross Gold Corporation

Front Street Resource Performance Fund Ltd. is a fund managed by Front Street Capital 2004 and advised by Front Street Investment Management Inc. The Units of the Fund are listed in the Toronto Stock Exchange under the symbol FRE.UN.

The offering is being led by National Bank Financial Inc. The other members of the agents' syndicate are CIBC World Markets Inc., RBC Dominion Securities Inc., BMO Nesbitt Burns Inc., Scotia Capital Inc., TD Securities Inc., Tuscarora Capital Inc., Blackmont Capital Inc., Canaccord Capital Corporation, Raymond James Ltd., Richardson Partners Financial Limited, Dundee Securities Corporation, GMP Securities L.P., HSBC Securities (Canada) Inc., MGI Securities Inc. and Wellington West Capital Inc.

Contact Information

  • Front Street Capital
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