TORONTO: Precious Metals and Mining Trust (the “Trust”) is pleased to announce that it will issue warrants (the “Warrants”) to subscribe for Trust units (the “Warrant Offering”) to its unitholders of record at the close of business (Toronto time) on March 30, 2010 (the “Record Date”).
Warrants and Subscription Price: Unitholders of record on March 30, 2010 will receive one Warrant for each Trust unit held on the Record Date. One Warrant will entitle the holder to purchase one Trust unit at a price of $7.42 per unit (the “Exercise Price”). On March 15, 2010, the Trust’s net asset value per unit at the close of business was $7.91. The Warrants can be exercised up until the expiration date of July 23, 2010 at 4:00 p.m. (Toronto time).
Proceeds and Expenses of the Offering: If all of the Warrants are exercised, the Trust will issue 9,717,733 Trust units for net proceeds of approximately $70.26 million after deducting the payment of the expenses of the Warrant Offering and the Warrant exercise fee by the Trust.
Additional Subscription Privilege: Each holder of Warrants who has subscribed for all of the Trust units to which such holder is entitled, may subscribe pro rata for additional Trust units, if available, that were not subscribed for initially, at a price equal to the Exercise Price.
Listing and Trading: The Warrants will begin trading on the Toronto Stock Exchange (“TSX”) on March 26, 2010 under the symbol MMP.WT. The TSX has conditionally approved the listing of the Warrants and the Trust units issuable upon the exercise of the Warrants, subject to the Trust fulfilling all of the listing requirements of the TSX.
Use of Proceeds: Subject to the Investment Restrictions, the net proceeds of this Warrant Offering will be invested by the Trust in securities in accordance with the investment objectives and the investment strategy of the Trust.
Precious Metals and Mining Trust: The Trust is a closed-end investment trust that aims to provide unitholders with long-term capital appreciation and monthly cash distributions. The Trust invests in an actively managed portfolio consisting primarily of equity securities of mining issuers listed on a North American stock exchange. The Trust units trade on the TSX under the symbol MMP.UN.
Sentry Select Capital Inc.: Sentry Select Capital Inc., the manager of the Trust, is a Canadian wealth management company that offers a diverse range of investment products including closed-end investment funds, mutual funds, principal-protected notes and flow-through limited partnerships, covering a variety of domestic and global mandates.
Certain statements included in this news release constitute forward-looking statements, including, but not limited to, those identified by the expressions “expect,” “intend,” “will” and similar expressions to the extent they relate to Sentry Select and/or the Trust. The forward-looking statements are not historical facts but reflect Sentry Select’s current expectations regarding future results or events including, but not limited to, the intended use of proceeds from the Warrant Offering. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although Sentry Select believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. Sentry Select and/or the Trust undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law. For a complete disclosure record of the Trust, please visit the Trust’s profile at www.sedar.com.
This offering is only made by short-form prospectus. The short-form prospectus dated March 15, 2010 contains important detailed information about the securities being offered. Copies of the short-form prospectus may be obtained from the issuer or are available electronically at www.sedar.com. Investors should read the short-form prospectus before making an investment decision.
Documents (including press releases) regarding the various investment funds that are managed or advised by Sentry are provided for information purposes only and cannot be relied on to be complete, exhaustive or error-free unless the complete set of documents for any given investment fund with respect to which information is being sought is reviewed and then only on SEDAR (www.sedar.com).