2,243,744 Series A shares of the Resource Fund (“Fund Shares“) were issued at their net asset value of $8.8174 per Fund Share. The final net asset value per Partnership unit for purposes of the Mutual Fund Rollover Transaction was $24.7733 per Partnership unit. Accordingly, each holder of Partnership units will receive 2.8096 Fund Shares for each Partnership unit held. The adjusted cost base for each Partnership unit was $19.0386 per Partnership unit and the adjusted cost base for each allocated Fund Share was $6.7763 per Fund Share. The after-tax return was 57.48% for an Ontario investor taxed at the highest marginal rate.
For investors looking for another tax-advantaged investment, Sprott has filed and received a receipt for final prospectus dated September 22, 2016 offering units of a new flow-through limited partnership, Sprott 2016-II Flow-Through Limited Partnership. The preliminary prospectus contains important detailed information about the securities being offered. Investors should read the prospectus before making an investment decision.
The Sprott Resource Fund has had strong performance this year, with a year-to-date return of 92.44% as of September 30, 2016 outperforming its benchmark (Blended Index, see table below) by 52.95%. It is worth noting that the fund’s performance continued to remain positive through the month of August, even when gold equities declined by 17%. Despite the fund’s approximate 40% weight in the gold sector, strategic stock selection and tactical asset allocation have proven successful in maintaining the positive performance of the fund this year.