Sprott Molybdenum Participation Corporation announces net asset value as at April 20, 2007
Mon Apr 23, 9:48 AM
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UNITED STATES/
TORONTO, April 23 /CNW/ - (TSX: MLY.TO) - Sprott Molybdenum Participation Corporation (the "Corporation") announces that its net asset value as at April 20th, 2007 is $220 million or $5.27 per common share. The fair market value of securities of companies that explore for, mine and/or process molybdenum held by the Corporation (the "Portfolio Investments") is $131 million and $105 million is invested in cash and money market securities. Gross appreciation in the value of Portfolio Investments since January 1, 2007 is $34 million.
The investments made by the Corporation to date were primarily purchased on a private placement basis and are therefore subject to certain hold periods pursuant to applicable securities laws. While these investments are restricted from resale, the securities will be valued at a price that is discounted from the market price of such securities. The total discount from market price is approximately $31 million before income taxes and fees.
The Corporation calculates its net asset value and the fair market value of the Portfolio Investments at 4:00 p.m. (Toronto time) on the last day of each week that the Toronto Stock Exchange is open for business.
Top Ten Holdings (as at April 20, 2007)
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1. Blue Pearl Mining Ltd.
2. Idaho General Mines Inc.
3. Roca Mines Inc.
4. Mercator Minerals Ltd.
5. Moly Mines Ltd.
6. International PBX Ventures Ltd.
7. Torch River Resources Ltd.
8. Virgin Metals Inc.
9. Inca Pacific Resources Inc.
10. Western Troy Capital Resources Inc.
As at April 20th, 2007, the Corporation has entered into commitments to invest an aggregate of $25.5M in additional Portfolio Investments. The Corporation is also currently in negotiations to purchase physical molybdenum.
About Sprott Molybdenum Participation Corporation
Sprott Molybdenum Participation 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 is intended to provide investors with the opportunity to invest in a diversified portfolio of securities of private and public companies that explore for, mine and/or process molybdenum as well as commercial forms of molybdenum. Additional information about the Corporation is available on SEDAR at www.sedar.com and on the Corporation's website at www.sprottmoly.com.
This press release may contain forward-looking statements, which reflect the Corporation's current expectations regarding future events. These forward-looking statements involve risks and uncertainties that may cause actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, changing market conditions, commodity prices, foreign investment risk, potential volatility of molybdenum prices, which are influenced by general economic, political and market considerations, industry risks, trading costs, competition from substitutes to molybdenum and other risks detailed from time to time in the Corporation's ongoing quarterly and annual reporting. The Corporation undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Past performance is not indicative of future performance.
Contacts
please contact Investor Relations at 1-888-362-7172 |
