Pathway Mining 2006 Flow-Through Limited Partnership

Pathway Mining 2006 Flow-Through Limited Partnership

June 07, 2006 09:34 ET

Pathway Mining 2006 Flow-Through Limited Partnership: Initial Public Offering 'Mining Flow-Through' Raised $12,660,750

TORONTO, ONTARIO--(CCNMatthews - June 7, 2006) - Pathway Mining 2006 Flow-Through Limited Partnership (the "Partnership") reports that as at June 1, 2006, the Partnership completed the first closing of its initial public offering and raised total gross proceeds of $12,660,750 in its initial public offering (the "Offering") of an aggregate of 1,266,075 limited partnership units at $10.00 per unit pursuant to a final prospectus dated May 29, 2006, which is available on SEDAR at www.sedar.com. Wellington West Capital Inc., Desjardins Securities Inc., HSBC Securities (Canada) Inc., Argosy Securities Inc., Burgeonvest Securities Limited, Integral Wealth Securities Limited and Leede Financial Markets Inc. acted as agents in the Offering, with Wellington West acting as the lead agent. Following completion of the Offering, Pathway Mining 2006 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 2006 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 Wickham Investment Counsel Inc. ("Wickham") 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 its technical expertise, advice and due diligence services to Wickham 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 Exploration Expenses to the Partnership with an effective date of December 31, 2006, 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, Barbara Y. Thomae, P.Geo. who is employed as a senior mining analyst by the Administrator (MineralFields Fund Management Inc.), will provide geological analysis to the Portfolio Manager.

Pathway Group's previous offering - Pathway Mining 2005 Flow-Through Limited Partnership - which closed in late 2005, was dissolved on May 8, 2006, 20 months ahead of schedule, 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.

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