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Shareholders of Sentry Select Primary Metals Corp. approve restructuring proposal

TORONTO: Sentry Select Capital Inc. (“the “Manager”), the manager of Sentry Select Primary Metals Corp. (the “Corporation”) (TSX: PME), is pleased to announce that the Class A shareholders of the Corporation have voted, at a special meeting held earlier today, to approve the proposed restructuring of the Corporation (the “Restructuring”), which includes:

  1. an amendment to the management agreement between the Corporation and the Manager, to reduce the annual management fee payable to the Manager from 1.60% of the Corporation’s net asset value, to 1.10%;
  2. amendment to the management agreement to eliminate any performance fees;
  3. an amendment to the management agreement to eliminate the Manager’s right to receive a termination fee;
  4. an amendment to the management agreement to state that the Manager will not resign as the manager of the Corporation;
  5. an amendment to the Corporation’s articles of amendment to implement an unlimited annual redemption right at the net asset value per Class A Share (“Share”), subject to a declining redemption fee schedule (the “Redemption Fee”); and
  6. an amendment to the Corporation’s articles of amendment to terminate the Corporation’s mandatory market purchase program (collectively, the “Proposal”).

Redemption Fee Schedule: Depending on the year of the annual redemption, Shares may be subject to a declining Redemption Fee, payable by the redeeming shareholder out of the redemption proceeds. The Redemption Fee will be paid to the Manager and will be equal to the percentage of net asset value per Share as of the applicable redemption date as shown in the following table:

                  Annual Redemption       Redemption Fee
                  2010                    5%
                  2011                    4%
                  2012                    3%
                  2013                    2%
                  2014                    1%
                  2015 onwards            0%

Dividend: The Proposal is not expected to affect the Corporation’s current monthly dividend rate of $0.07 per Share.

Sentry Select Primary Metals Corp.: Sentry Select Primary Metals Corp.’s investment objective is to provide shareholder’s with long-term capital appreciation. The Corporation is invested in an actively managed portfolio consisting primarily of securities of mining and exploration issuers, with a current focus on gold and silver issuers.

Sentry Select Capital Inc.: Sentry Select Capital Inc., the manager of the Corporation, 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 the Corporation or the Manager. The forward-looking statements are not historical facts but reflect the Corporation’s and the Manager’s current expectations regarding future results or events. 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 including, but not limited to, the Corporation’s future dividend rate following the implementation of the Proposal. Although the Corporation and the Manager believe 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. Neither the Corporation nor the Manager undertake any 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 Corporation, please visit the Corporation’s profile at

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 (