| Sprott Molybdenum Participation Corporation releases results for the three and six months ended June |
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| Written by MolySeek.com | |
| Wednesday, 08 August 2007 | |
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(TSX: MLY, MLY.WT) TORONTO, Aug. 8 /CNW/ - Sprott Molybdenum Participation Corporation (the "Corporation") announces its results for the three and six months ended June 30, 2007. Increase in net assets from operations after taxes, for the three and six months ended June 30, 2007, amounted to $16 million and $25 million respectively. During the period from January 1 to June 30, 2007, the investments in equities have generated unrealized gains of $36 million or 22.66%; $25 million of the total $36 million was generated in the period from April 1 to June 30, 2007. The largest gainers included Idaho General Mines Inc., Mercator Minerals Ltd. and Thompson Creek Metals Company Inc. (formerly Blue Pearl Mining Ltd.). Molybdenum oxide scheduled for delivery in the fourth quarter of 2007 was purchased in April 2007 and has increased in value by $2 million. Total unrealized gains for the periods from January 1 to June 30, 2007 and April 1 to June 30, 2007, including gains on equities, contract to purchase molybdenum oxide and short-term investments, amounted to $39 million and $27 million respectively. The most significant expenses of the Corporation have been accrued incentive fees of $4.2 million and management fees of $0.8 million, with both fees calculated pursuant to the management services agreement dated April 3, 2007. Advisory fees of $0.4 million were paid to third party investment advisors for consulting and advisory services provided to the Corporation in relation to some of its more significant investments. The net asset value of the Corporation as at June 30, 2007 was $240 million or $5.40 per share. "Performance has been strong for both equity investments and physical molybdenum", reported Eric Sprott, CEO and President, "we are confident in our chosen investment strategy and are strong believers in future appreciation of the price of molybdenum." On July 31, 2007, the Corporation announced a normal course issuer bid. The Corporation intends to purchase, through the facilities of the Toronto Stock Exchange, up to 4,177,600 common shares of the Corporation representing approximately 10% of the unrestricted public float. The purpose of the normal course issuer bid is to provide the Corporation with a mechanism to decrease the spread between the net asset value per share and the market price of the shares. The Corporation will not purchase in any given 30-day period, in the total, more than 889,766 common shares, being 2 per cent of the issued and outstanding securities as of July 31, 2007. << As at June 30, 2007, the holdings of the Corporation were as follows: Portfolio Holdings Name of Security % of Total Net Assets ------------------------------------------------------------------------- Thompson Creek Metals Company Inc. 18.74 Idaho General Mines Inc. 10.44 Quadra Mining Ltd. 10.27 Inca Pacific Resources Inc. 9.99 Mercator Minerals Ltd. 8.51 Roca Mines Inc. 5.75 Moly Mines Limited 4.57 International PBX Ventures Ltd. 2.40 Galway Resources Ltd. 1.61 Golden Phoenix Minerals Inc. 1.47 Virgin Metals Inc. 1.43 Torch River Resources Ltd. 1.25 TTM Resources Inc. 1.10 Erdene Gold Inc. 1.02 Western Troy Capital Resources Inc. 0.99 Tournigan Gold Corporation 0.81 Georgia Ventures Inc. 0.75 Columbia Yukon Explorations Inc. 0.24 Amerigo Resources Ltd. 0.23 ------------------------------------------------------------------------- Top portfolio holdings as a percentage of total net assets 81.57 ------------------------------------------------------------------------- >> About Sprott Molybdenum Participation Corporation ------------------------------------------------- The Corporation is an investment holding company created to invest in molybdenum assets. The primary investment objective of the Corporation is to achieve capital appreciation by investing in securities of private and public companies that explore for, mine and/or process molybdenum and by investing in, holding, selling and otherwise transacting in all commercial forms of molybdenum. It is not an investment strategy of the Corporation to actively speculate with regards to short-term changes in molybdenum prices. The Corporation's investment mandate will provide investors with several benefits. It will provide investors with the opportunity to invest in commercial forms of molybdenum, which is currently unavailable through an exchange. In addition, it will provide investors with a diversified portfolio of securities of private and public companies that explore for, mine and/or process molybdenum. No securities regulatory authority has either approved or disapproved of the contents of this news release. The securities being offered have not been and will not be offered or sold in the United States or to, or for the account or benefit of, a "U.S. person", as such term is defined in Regulation S under the United States Securities Act of 1933, as amended. This press release is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any of these securities in the United States. For further information: Investor Services at 1-888-362-7172 |
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