Pathway Mining 2008 Flow-Through Limited Partnership

Pathway Asset Management

Pathway Asset Management

May 06, 2008 18:04 ET

Pathway Mining 2008 Flow-Through Limited Partnership: Fourth Closing Initial Public Offering (Mining Flow-Through) Raised $7,183,490, Total Now at $33,452,360

TORONTO, ONTARIO--(Marketwire - May 6, 2008) - Pathway Mining 2008 Flow-Through Limited Partnership (the "Partnership" or "Pathway Mining 2008 FTLP") reports that it has completed a fourth closing of its Initial Public Offering (the "Offering") and raised total gross proceeds of $7,183,490 on the sale of an aggregate of 718,349 limited partnership units at $10.00 per unit pursuant to a Final Prospectus dated January 28, 2008, which is available on SEDAR at www.sedar.com. The first, second, third and fourth closings have raised aggregate gross proceeds of $33,452,360. Wellington West Capital Inc., HSBC Securities (Canada) Inc., Burgeonvest Securities Limited, Canaccord Capital Corporation, Raymond James Ltd., 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 2008 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 2008 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. 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, 2008, and to assist the Partnership in determining whether flow-through shares should continue to be held or sold. Horst Mueller of Mueller Behavioural Analytics Inc. 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.

Pathway Asset Management's last six prospectus offerings - 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 and Pathway Quebec Mining 2007 Flow-Through Limited Partnership - all sold out and were oversubscribed.

The final closing for Pathway Quebec Mining 2008 FTLP is expected by end of May, 2008.

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 (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 (the after-tax returns are calculated in accordance with certain assumptions disclosed in the prospectus). 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, with an after-tax return of 140.99 % before factoring in capital gains tax, and 85.00 % when capital gains tax is factored in (the after-tax returns are calculated in accordance with certain assumptions disclosed in the prospectus).

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