Norrep Performance 2011 Flow-Through Limited Partnership
What is Flow-Through?
Flow-through shares are offered by Canadian resource companies to provide investors with significant tax deductions to shelter income and potential for capital appreciation. This is possible due to an incentive program offered by the Canadian government that enables Canadian mining and oil & gas companies to raise money for exploration and development. The companies “flow-through” (pass on) tax-deductible expenses directly to investors.
As a leader in resource investing, Hesperian Capital Management Ltd. — manager of the Norrep Group of Funds — has managed thirteen previous flow-through limited partnerships (including the Norrep Performance 2011 FTLP) and has raised over $430 million for flow-through investing since 1999.
About the Partnership
The Norrep Performance 2011 Flow-Through Limited Partnership was closed to investors on April 29, 2011. The Partnership issued a total of 1,259,400 Partnership Units at $10.00 per Partnership Unit for aggregate gross proceeds of $12,594,000.
The Partnership is invested in flow-through shares of resource companies whose principal business is (i) oil & gas exploration, development and production, (ii) mineral exploration, development and production, or (iii) renewable energy development and production in Canada. The Norrep Performance 2012 FTLP sets itself apart by by preferring lower-risk development drilling (70% CDE target) to higher-risk exploration drilling (30% CEE target). CDE is a lower-risk activity to develop already identified oil and gas pools or mineral deposits.
By November 10, 2011, the proceeds of the Norrep Performance 2011 FTLP were fully invested in flow-through shares of thirteen high quality public Canadian resource companies.
After the objectives of the Norrep Performance 2011 Flow-Through Limited Partnership are achieved, the Partnership will be liquidated and investors exchange their units for an equivalent value of units in a Norrep mutual fund. The exchange is a tax-deferred event meaning the investment continues to experience capital gains potential without tax until it is ultimately sold.
For maximized tax deductions, investors may also choose to re-invest their proceeds in a future Norrep FTLP or donate the mutual fund shares received from the rollover to a charity.
Norrep encourages investors to consult with their tax professional for more information on how flow-through tax deductions can benefit their financial situation. The Norrep Performance 2011 Flow-Through Limited Partnership offering was made by a prospectus dated February 28, 2011 (the "Prospectus"). The Prospectus contains important information relating to these securities.
