Pathway Mining 2009 Flow-Through Limited Partnership

Pathway Asset Management

Pathway Asset Management

May 25, 2009 10:16 ET

Pathway Mining 2009 Flow-Through Limited Partnership Second Closing Initial Public Offering (Mining Flow-Through) Raised $1,988,620, Total Raised $6,263,880

TORONTO, ONTARIO--(Marketwire - May 25, 2009) - Pathway Mining 2009 Flow-Through Limited Partnership (the "Partnership" or "Pathway Mining 2009 FTLP") reports that it has completed a second closing of its Initial Public Offering (the "Offering") and raised total gross proceeds of $1,988,620 on the sale of an aggregate of 198,862 limited partnership units at $10.00 per unit pursuant to a Final Prospectus dated March 16, 2009, which is available on SEDAR at www.sedar.com. Wellington West Capital Inc., HSBC Securities (Canada) Inc., Burgeonvest Securities Limited, Canaccord Capital Corporation, Raymond James Ltd., GMP Securities L.P., 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 2009 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 and development 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, and William D.B. Koenig, CFA, CMA will be the individual portfolio manager at Pathway who will portfolio manage the Partnerships investments. 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, 2009, 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, 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. The federal tax shelter identification number for the Partnership is TS 074773.

The third closing for Pathway Mining 2009 FTLP is expected on June 10, 2009 (settlement on June 12). Pathway also has a separate mining super flow-through offering out now - Pathway Quebec Mining 2009 Flow-Through Limited Partnership - available for Canadian residents in Quebec. Pathway has also just launched Pathway Oil & Gas 2009 Flow-Through Limited Partnership, with a focus on the oil and gas side of the flow-through spectrum.

The following 9 prospectus offerings through Pathway Asset Management from 2006 through 2008 all sold out and were oversubscribed: 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, Pathway Quebec Mining 2007 Flow-Through Limited Partnership, Pathway Mining 2008 Flow-Through Limited Partnership, Pathway Quebec Mining 2008 Flow-Through Limited Partnership, Pathway Oil & Gas 2008 Flow-Through Limited Partnership and Pathway Quebec Mining 2008-II Flow-Through Limited Partnership.

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 (Pathway 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). Pathway Group's third offering - Pathway Mining 2006-II Flow-Through Limited Partnership - was also dissolved and rolled over 7 1/2 months ahead of schedule @ $10.09 per $10.00 unit, with an after-tax return of 116.61 % before factoring in capital gains tax, and 66.35 % when capital gains tax is factored in (the after-tax returns are calculated in accordance with certain assumptions disclosed in the prospectus). In other words, Pathway Asset Management has dissolved and rolled over each of its first 3 prospectus offerings way ahead of schedule, and above par. And just over a week ago, Pathway Quebec Mining 2008-II Flow-Through Limited Partnership was also dissolved and rolled over 19 months ahead of schedule @ $12.25 per $10.00 unit, with an after-tax return of 244.59 % before factoring in capital gains tax, and 161.51 % when capital gains tax is factored in (the after-tax returns are calculated in accordance with certain assumptions disclosed in the prospectus.

Pathway Asset Management and its affiliates have raised $576,331,360 in their flow-through limited partnerships to date since their inception.

Information on the Partnership can be obtained by visiting the website www.pathwayam.com or by contacting the General Partner by e-mail at jd@mineralfields.com, by telephone at (416) 665-9339 ext 221, toll-free at 1 (800) 339-9169 ext 221, or by facsimile at (416) 665-9331.

Contact Information

  • Pathway Asset Management
    Imtiaz Hashmani
    CFO
    (416) 665-9339 Ext. 229 or Toll Free 1-800-339-9169 Ext. 229
    (416) 665-4772 (FAX)
    Website: www.pathwayam.com