Pathway Quebec Mining 2010-II Flow-Through Limited Partnership

Pathway Asset Management

Pathway Asset Management

September 30, 2010 11:23 ET

Pathway Quebec Mining 2010-II Flow-Through Limited Partnership Initial Public Offering (Mining Flow-Through) Raised $10,448,120 on First Closing

TORONTO, ONTARIO--(Marketwire - Sept. 30, 2010) - Pathway Québec Mining 2010-II Flow-Through Limited Partnership (the "Partnership") reports that it has completed a first closing of its Initial Public Offering (the "Offering") and raised total gross proceeds of $10,448,120 on the sale of an aggregate of 1,044,812 limited partnership units at $10.00 per unit pursuant to a Final Prospectus dated September 23, 2010, which is available on SEDAR at www.sedar.com. Wellington West Capital Inc., Desjardins Securities Inc., HSBC Securities (Canada) Inc., Industrial Alliance Securities Inc., BMO Nesbitt Burns Inc., Canaccord Genuity Corp., Dundee Securities Corporation 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 Québec Mining 2010-II 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 2010 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 the Portfolio Manager who will 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, 2010, 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., are employed as senior mining analysts by MineralFields Fund Management Inc., the Investment Fund Manager of the Partnership, and will provide geological analysis through the Portfolio Manager. The federal tax shelter identification number for the Partnership is TS 077016 and the Québec tax shelter number is QAF 10-01385.

This is Pathway's seventh offering specifically designed for Québec investors, following on the six sold-out Pathway offerings in Québec in 2007, 2008, 2009 and 2010 and cementing Pathway's commitment to Québec. Joe C. Dwek, President of Pathway Québec states that "Pathway Asset Management recognizes the fantastic potential in Québec 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. We are deeply honoured and thankful to the citizens of Québec for their support of our Québec-centric investment product."

The second closing for Pathway Québec Mining 2010-II FTLP is expected on October 29, 2010 (with the book closing on October 27). Pathway also has two other prospectus offerings out now -- Pathway Mining 2010 Flow-Through Limited Partnership for investors outside Québec , and Pathway Oil & Gas 2010 Flow-Through Limited Partnership for investors throughout Canada (including Québec).

The following 16 prospectus offerings through Pathway Asset Management from 2006 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 Québec Mining 2007 Flow-Through Limited Partnership, Pathway Mining 2008 Flow-Through Limited Partnership, Pathway Québec Mining 2008 Flow-Through Limited Partnership, Pathway Oil & Gas 2008 Flow-Through Limited Partnership, Pathway Québec Mining 2008-II Flow-Through Limited Partnership, Pathway Québec Mining 2009 Flow-Through Limited Partnership, Pathway Québec Mining 2009-II Flow-Through Limited Partnership, Pathway Mining 2009-II Flow-Through Limited Partnership, Pathway Québec Mining 2010 Flow-Through Limited Partnership, Pathway Mining 2010 Flow-Through Limited Partnership and Pathway Québec Mining 2010 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. 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. Pathway Group's third offering – Pathway Mining 2006-II Flow-Through Limited Partnership – was also dissolved and rolled over 7 ½ months ahead of schedule @ $10.09 per $10.00 unit. In other words, Pathway Asset Management dissolved and rolled over each of its first 3 prospectus offerings way ahead of schedule, and above par. Additionally, on May 4, 2009, Pathway Québec Mining 2008-II Flow-Through Limited Partnership was dissolved and rolled over 19 months ahead of schedule @ $12.25 per $10.00 unit, on January 5, 2010, Pathway Québec Mining 2008 Flow-Through Limited Partnership was dissolved and rolled over 2 months ahead of schedule @ $10.49 per $10.00 unit, and on March 11, 2010, Pathway Mining 2008 Flow-Through Limited Partnership was dissolved and rolled over ahead of schedule @ $10.36 per $10.00 unit. Pathway Mining 2009 Flow-Through Limited Partnership was dissolved and rolled over 12 months ahead of schedule @ $13.33 per $10.00 unit.

Pathway Asset Management and its affiliates have raised $112,001,550 in their flow-through limited partnerships to date since their inception.

Pathway is a diversified financial products and asset management company headquartered in Toronto, with offices in Montreal, Vancouver, and Calgary. Pathway mutual funds are distributed through licensed financial advisors and investment dealers.

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)
    www.pathwayam.com