TORONTO, Jan. 2 /CNW/ - TDK (1998) General Partner Inc., the general partner of TDK (1998) Flow-Through Limited Partnership (the "Partnership"), is pleased to announce that it has filed, and has received receipts from the securities regulators of all 10 Canadian provinces, for the final prospectus of TDK Resource Fund Inc. (the "Fund"). Following the close of business on January 3, 2001, all of the assets of the Partnership (other than cash) will be transferred to the Fund on a tax-deferred basis in exchange for shares of the Fund. Immediately thereafter, these shares of the Fund will be distributed by the Partnership to its Limited Partners on the basis of one share of the Fund for each unit of the Partnership. On January 5, 2001, active management of the Fund's portfolio, which will consist of transferred assets referred to above, will commence. The Partnership will be subsequently dissolved.
The Fund's investment objective is to maximize capital growth by investing its assets primarily in equities of Canadian natural resource companies including, by way of example, those engaged in mining, oil and gas, forest products, water resources and fishing, and those companies that support such industries. Natural resource companies in which the Fund invests may also include so-called "royalty companies", which do not themselves carry on resource businesses but rather acquire, through purchase of equity or debt securities of a resource company, the right to participate in the revenues or profits of such resource company.
The Fund will be managed by Wayne Deans of Deans Knight Capital Management Ltd. The Fund will initially only be available to the former Limited Partners of the Partnership and will not otherwise be offered to the public.