TORONTO: Precious Metals and Mining Trust (the “Trust”) wishes to provide unitholders and warrant holders with a further update on the Trust’s warrant offering.
On March 16, 2010, the Trust announced that it would 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”).
Unitholders received one Warrant for each Trust unit held on the Record Date.
The Warrants can be exercised up until the expiration date of July 23, 2010 at 4:00 p.m. (Toronto time) (the “Warrant Expiry Time”). Warrant holders should contact their broker or investment advisor in advance of the Warrant Expiry Time as each broker or investment advisor may require additional lead time to process a request.
Warrants and subscription price: One Warrant entitles the holder to purchase one Trust unit at a price of $7.42 per unit (the “Exercise Price”) before the Warrant Expiry Time. At the close of business on July 15, 2010, the Trust’s net asset value per Trust unit was $8.21 and the Trust’s fully diluted net asset value was $8.01. On July 19, 2010, the Trust’s closing market price was $7.70 per Trust unit.
Discount to NAV and market price: The subscription price of $7.42 represents a discount of 7.4% to the fully diluted net asset value per Trust unit on June 15, 2010 and a discount of 3.6% to the market price per Trust unit on July 19, 2010.
Distribution guidance: In a press release on June 22, 2010, Sentry Investments (“Sentry”) announced that for the next 12 months, the indicative monthly distribution amount for the Trust will remain at $0.10 per unit. However if the make-up of the Trust’s portfolio changes, distributions may differ.
Proceeds and expenses of the Offering: If all of the Warrants are exercised, the Trust will issue 9,717,733 Trust units for total 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 Warrant holder 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. Warrant holders who wish to use the additional subscription privilege should review the prospectus and the warrant indenture for further details.
Listing and trading: The Warrants began trading on the Toronto Stock Exchange (the “TSX”) on March 26, 2010 under the symbol MMP.WT. On July 19, 2010, the Warrants’ closing market price was $0.385 per warrant.
Use of proceeds: Subject to the Trust’s 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 Investments: Sentry Investments is a Canadian asset management company that offers a diverse range of investment products including mutual funds, hedge funds, flow-through limited partnerships, closed-end trusts and other alternative investments, covering a variety of domestic and global mandates.
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).