Pathway Quebec Mining 2007 Flow-Through Limited Partnership

Pathway Asset Management

Pathway Asset Management

November 27, 2007 13:14 ET

Pathway Quebec Mining 2007 Flow-Through Limited Partnership: Third and Final Closing of Offering (Mining Flow-Through) Raised $1,305,020 and Sold Out Offering

TORONTO, ONTARIO--(Marketwire - Nov. 27, 2007) - Pathway Quebec Mining 2007 Flow-Through Limited Partnership (the "Partnership" or "Pathway Quebec Mining 2007 FTLP") reports that it has completed a third closing of its Initial Public Offering (the "Offering") and raised total gross proceeds of $1,305,020 on the sale of an aggregate of 130,502 limited partnership units at $10.00 per unit pursuant to a Final Prospectus dated September 21, 2007, which is available on SEDAR at www.sedar.com. All three closings have raised a total of $10,000,000, thereby selling out the Offering; last-minute subscriptions had to be turned away. Wellington West Capital Inc., HSBC Securities (Canada) Inc., Desjardins Securities Inc., Canaccord Capital Corporation, Research Capital Corporation, Integral Wealth Securities Limited, Industrial Alliance Securities Inc. and Laurentian Bank Securities Inc. acted as agents in the Offering, with Wellington West acting as the lead agent. Following completion of the Offering, Pathway Quebec Mining 2007 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 2007 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. ("Pathway") 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 Pathway 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, 2007, 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.

Pathway's last five 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 and Pathway Mining 2007-III Flow-Through Limited Partnership - all sold out and were oversubscribed.

Accordingly, Pathway Quebec Mining 2007 Flow-Through Limited Partnership now becomes Pathway Group's sixth prospectus in a row to be sold out, and more importantly, highlights Pathway's successful entry into Quebec, which is Canada's second largest consumer of flow-through products. Joe C. Dwek, President of Pathway Quebec states that "Pathway Asset Management recognizes the fantastic potential in Quebec as both an issuer of quality mining flow-through shares, as well as a province that benefits from its government's fabulous tax deductions and the enthusiasm of its residents to invest in our quality flow-through limited partnerships. We have invested in the best manpower and marketing tools to support our advisors and their clients, and will continue to improve the quality of our commitment over the coming years."

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 plans to continue to build upon its solid performance and satisfy growing investor demand for its products, and will continue to launch other mining super flow-through prospectus offerings in the near future.

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

Contact Information

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