September 9, 2002 - TRF General Partner Inc., the general partner of Triax Resource Limited Partnership, wishes to comment on the announcement by Canadian 88 Energy Corp. ("Canadian 88") yesterday of the prospective acquisition by Canadian 88 of all of the issued and outstanding shares of RMX Exploration Ltd. ("RMX") which is a substantial holding of the Partnership.
Currently, monthly redemptions of units of the Partnership are limited to 4% of the issued and outstanding units as at the beginning of each month. Pursuant to the redemption plan approved by the Limited Partners of the Partnership on January 23, 2002, the disposition by the Partnership of all of its illiquid holdings was a condition to full liquidity for Limited Partners. If the transaction announced yesterday by Canadian 88 is completed, the Partnership will remove the 4% limit on monthly redemptions of the Partnership's units.
The timing of when the 4% limitation is removed will depend on when the acquisition is completed. If it occurs prior to a redemption cut-off date in any month, then the limitation will not apply to those units already tendered. If it occurs after a redemption cut-off date in any month, then the limitation will apply to those units already tendered, but will not apply to units tendered for redemption in the subsequent month.
The sale of RMX will not have an impact on the net asset value of the Partnership's units.
Triax Resource Limited Partnership trades on The Toronto Stock Exchange under the symbol TRF.UN.
For more information, please call the General Partner at (416) 362-2929 or (800) 407-0287.