| | Thu Apr 27, 2006
Preliminary Prospectus
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| | Canadian Small Cap Resource Fund 2006 No. 1 Limited Partnership ("CSCRF 2006"), announces that it has filed a preliminary prospectus relating to the initial public offering of units of CSCRF 2006 (the "Units"). The CSCRF 2006 offering is being made on a commercially reasonable efforts agency basis by a syndicate led by Blackmont Capital Inc. and including HSBC Securities (Canada) Inc., Pacific International Securities Inc., Union Securities Ltd., Berkshire Securities Inc., and IPC Securities Inc. The offering will be made available in Nova Scotia, Ontario, Manitoba, Saskatchewan, Alberta and British Columbia.
The offering will be for a maximum of $50,000,000 and a minimum of $3,000,000. The Units will be priced at $10.00 per Unit, with a minimum subscription of 250 Units ($2,500).
The investment objective of the CSCRF 2006 is to invest in Flow-Through Shares of Junior and Small Cap Resource Issuers engaged in mineral or oil and gas exploration in Canada, with a view to maximizing the tax benefit of an investment in Units. It is expected that substantially all of the investment in the Units will be fully tax deductible, with approximately 90% of the deduction available in 2006.
Investments will be made with the intent to create a diversified mineral resource portfolio. The investment portfolio will be built and managed by the General Partner with a view to capital appreciation on the CSCRF 2006's investments. The General Partner's investment strategy is to invest in Flow-Through Shares of Resource Issuers that it considers to represent good value, have experienced and capable senior management, have a strong exploration program in place and offer potential for future growth.
Canadian Small Cap Resource Fund 2005 No. 1 Limited Partnership (the "2005 LP") Update
We are very pleased to also announce that the equity portfolio of the 2005 LP has seen a substantial increase in value during its first three months since inception. The equity portfolio value has risen from $3,823,675 as at December 31, 2005 to $6,693,660 on March 31, 2006. In addition, the attendant warrants within the portfolio add in the money value of approximately $780,000. This represents an overall Net Asset Value per unit ("NAV") at March 31 of $15.84, a 58% increase above the unit issue price.
The rise in the NAV is believed to be in part in response to the recent rise in prices of both precious and base metals. However, the strong results from the exploration programs conducted by our portfolio's constituent companies are most likely the principal driver of the share price increases.
To lock in the benefit of the gains of the 2005 LP portfolio, the board of the General Partner has approved an early distribution of cash in the amount of $2.00 per unit for each unit held by the limited partners. Thus, a holder of the minimum number of 250 units would receive a distribution of $500. The General Partner intends to complete this initial cash distribution from the 2005 LP during the first week of May.
For further information on the Canadian Small Cap Resource Funds and our flow-through limited partnerships, visit our website, www.cscrf.ca.
On the behalf of the General Partner:
Stephen Wilkinson
Chief Executive Officer
888-350-8818 |
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| | You can view the Next CSCRF Corporate News item: Thu Apr 27, 2006, Early Cash Distribution for CSCRF 2005 Limited Partnership
You can view the Previous CSCRF Corporate News item: Mon Apr 3, 2006, Sedar filing: Canadian Small Cap Resource Funds 2004 Limited Partnership
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