TORONTO, August 24, 2006 - TDK Fund Management Inc. is pleased to announce that TDK Resource Fund Inc. (the "Fund") will re-open effective August 25, 2006. The Fund has filed and received a receipt from the securities regulators of all the Canadian provinces for a final prospectus in respect of its Class A Shares, Series 1.
Deans Knight Capital Management Ltd. is the Fund's portfolio advisor and will provide investment analysis and make investment decisions on behalf of the Fund. Wayne Deans is the lead portfolio manager and is renowned for investing in undervalued and overlooked small cap companies in the resource sector. According to Mr. Deans:
"We see similarities between today's market conditions and those that were experienced during the 1970s, when commodities had a long and sustained rise in value throughout the decade while the major stock market indices were relatively flat. Commodity prices have risen sharply in the past five years but we believe this commodity cycle will continue for several years. The World is operating with almost no excess capacity in oil, nickel or copper. Prices will need to remain high for these products in order to encourage further resource exploration and development to fulfill the rising demand. However, we remain extremely disciplined towards our investment process and are limiting the amount of new capital being accepted in order to maximize returns to investors. New capital is expected to be invested in current portfolio companies and new, undervalued and under-followed companies."
The investment objective of the Fund is to maximize capital growth by investing its assets primarily in equities of Canadian natural resource companies, while also having the ability to invest a portion of its assets in securities of foreign issuers.
The Fund reserves the right to close the Fund to new purchases if the capital raised from subscriptions exceeds the amount that can be productively deployed under the Fund's investment strategy.
For more information, please call Rob MacNiven, TDK Fund Management Inc. at (416) 642-1289 or (877) 642-1289.