Canadian Warrants

The trust uses the book-entry only system administered by CDS Clearing and Depository Services Inc. with respect to units and warrants. The trust may also use the non-certificated issue system or another system administered by CDS.

A holder of warrants may subscribe for the resulting number of units or any lesser whole number of units by instructing the CDS participant holding the subscriber's warrants to exercise all or a specified number of such warrants and forwarding the subscription price for each unit subscribed for in accordance with the terms of the offering and the warrant indenture to the CDS participant which holds the subscriber's warrants. The subscription price is payable in Canadian funds by certified cheque, bank draft or money order drawn to the order of a CDS participant, by direct debit from the subscriber's brokerage account or, by electronic funds transfer or other similar payment mechanism. All payments must be forwarded to the appropriate office of the CDS participant. The entire subscription price for units subscribed for must be paid at the time of subscription and must be received by the warrant agent prior to 4 p.m. (Toronto time) on the expiry date.

Each holder of warrants that subscribes for units to which such holder is entitled pursuant to the basic subscription privilege may, at any time during the exercise period, subscribe for additional units pursuant to the additional subscription privilege, if applicable, at a price equal to the subscription price for each additional unit subject to availability. Holders of warrants must fully exercise all of their warrants under the basic subscription privilege in order to be eligible for the additional subscription privilege. To apply for additional units under the additional subscription privilege, a beneficial holder of warrants must forward their request to a CDS participant prior to 4 p.m. (Toronto time) on the expiry date. Payment for additional units, in the same manner as for units, must accompany the request when it is delivered to the CDS participant, as the case may be. Any excess funds will be returned by mail or credited to a subscriber's account with its CDS participant without interest or deduction. Payment in full of the subscription price must be received by the warrant agent prior to 4 p.m. (Toronto time) on the expiry date, failing which the subscriber's entitlement to such units will terminate. Accordingly, the subscriber must deliver payment and instructions sufficiently in advance of the expiry date to allow the CDS participant to properly exercise warrants on such subscriber's behalf and apply for additional units under the additional subscription privilege, as applicable.

The units of the trust are not registered under the 1933 act. This offering is made in Canada and not outside of Canada. This offering is not, and under no circumstances is to be construed as, an offering of any units for sale in the United States or an offering to or for the account or benefit of any U.S. person or a solicitation therein of an offer to buy any securities. Accordingly, no subscriptions will be accepted from any person, or their agent, who appears to be, or who the trust has reason to believe is, a national or resident of the United States.

It is expected that the CDS participant for unitholders resident outside of Canada will, prior to the expiry date, attempt to sell for the warrants allotable to such unitholders at the price or prices it determines in its discretion. Any proceeds received by the CDS participant with respect to such warrants are expected to be delivered by the CDS participant as soon as practicable to such unitholders.

The warrants will be governed by the terms of a warrant indenture dated March 15, 2010, between the fund and Equity Transfer & Trust Company, as warrant agent. The warrant indenture provides for appropriate adjustments to the warrants in the event of stock dividends, subdivisions, consolidations and other forms of capital reorganization. The trust will pay a fee at the time the warrants are exercised equal to 14 cents per unit to the dealer whose client is exercising the warrants.

Precious Metals arranges warrant offering

2010-03-16 14:52 MT - News Release
Precious Metals and Mining Trust will issue warrants to subscribe for trust units to its unitholders of record at the close of business (Toronto time) on March 30, 2010, the record date.

Unitholders of record on March 30, 2010, will receive one warrant for each trust unit held on the record date. One warrant will entitle the holder to purchase one trust unit at a price of $7.42 per unit. On March 15, 2010, Precious Metals' net asset value per unit at the close of business was $7.91. The warrants can be exercised up until the expiration date of July 23, 2010, at 4 p.m. (Toronto time).

If all warrants are exercised, the trust will issue 9,717,733 units for net proceeds of approximately $70.26-million after deducting the payment of the expenses of the warrant offering and the warrant exercise fee by the trust.

Each holder of warrants who has subscribed for all of the units to which such holder is entitled, may subscribe pro rata for additional units, if available, that were not subscribed for initially, at a price equal to the exercise price.

The warrants will begin trading on the Toronto Stock Exchange on March 26, 2010, under the symbol MMP.WT. The TSX has conditionally approved the listing of the warrants and the units issuable upon the exercise of the warrants, subject to Precious Metals fulfilling all of the listing requirements of the exchange.

Subject to the investment restrictions, the net proceeds of this offering will be invested by Precious Metals in securities in accordance with its investment objectives and investment strategy.