| | Wed Mar 21, 2007
Winding Up Of Canadian Small Cap Resource Fund 2005 No. 1 Limited Partnership ("Cscrf 2005 Lp") & Cash Pay-Out Of Units
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| | Canadian Small Cap Resource Fund 2005 Management Limited, the General Partner of CSCRF 2005 LP announces that, pursuant to the terms of the partnership agreement, CSCRF 2005 LP is to be dissolved on March 31, 2007. The General Partner is planning to distribute the net assets of CSCRF 2005 LP during the week commencing March 26, 2007. CSCRF 2005 LP unit holders will receive a cash distribution equal to $10.24 per unit held or an aggregate of $4,880,261.12 The cash per unit is paid net of closure costs, management fees and bonuses due for the current period. Including the early distribution of cash in the amount of $2.00 per unit that was paid to the limited partners in May 2006, the total cash to be distributed to the unit holders of CSCRF 2005 LP amounts to $12.24 per unit or an aggregate of $5,833,437.12.
Stephen Wilkinson, President and CEO of the General Partner is pleased to report that CSCRF 2005 LP was successful in achieving its investment objectives. The original funding for CSCRF 2005 LP raised a gross amount of $4,765,880 through the sale of partnership units priced at $10 per unit. The General Partner estimates(1) that, net of capital gains taxes and income tax savings, the resulting purchase cost is approximately $4.65 per unit and the after-tax return to investors is in the order of 104%.
The CSCRF 2005 LP was the second of the Canadian Small Cap Resource Funds, all of which invest in Flow-Through Shares of Canadian exploration companies with a view to preservation of capital and capital appreciation of the partnership's investments. Since 2004 the CSCRF group has raised more than $22 million in flow-through funds. The structure of the Canadian Small Cap Resource Funds offers investors the added benefit of deductions from income and non-refundable tax credits.
For information on CSCRF 2005 LP and the other Canadian Small Cap Resource Funds, please visit our website at: www.cscrf.ca
On the behalf of the General Partner: Stephen Wilkinson
Chief Executive Officer
888-350-8818
Notes: (1) Estimates computed based on a number of assumptions including but not limited to the following:
a) The Limited Partner's adjusted cost base of a unit is equal to nil. Therefore, the disposition by a Limited Partner of Units held by the Limited Partner as capital property will result in a capital gain.
b) 50% of capital gains are taxable in computing a Limited Partner's income. Actual tax savings/cost will vary from the estimates set forth above depending on each Limited Partner's actual marginal tax rate. An assumed marginal tax rate of 46% has been used in calculating the applicable taxes payable as a result of the disposition.
/NOT FOR DISTRIBUTION IN THE UNITED STATES OR UNITED STATES WIRE SERVICES/ |
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