Are You An Accredited Investor?

If you meet the definition “accredited investor” (see below), you may invest a minimum of $25,000. Please consult the Offering Memorandum to determine your qualification status. Investment Advisors should consult their company’s internal policies.

The Subscriber, or one or more beneficial purchasers for whom the Subscriber is acting, is (i) a resident of, or the purchase and sale of securities to the Subscriber is otherwise subject to the securities legislation of one of the following: British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Québec, Newfoundland and Labrador, Nova Scotia, New Brunswick, Prince Edward Island, North West Territories, or Nunavut, and the Subscriber is (and will at the time of acceptance of the Subscription be) an accredited investor within the meaning of National Instrument 45-106 Prospectus and Registration Exemptions (“NI 45-106”) because the Subscriber is one of the following:

(a) except in Ontario, a Canadian financial institution, or a Schedule III bank;

(b) except in Ontario, the Business Development Bank of Canada incorporated under the Business Development Bank of Canada Act (Canada);

(c) except in Ontario, a subsidiary of any person referred to in paragraphs (a) or (b), if the person owns all of the voting securities of the subsidiary, except the voting securities required by law to be owned by directors of that subsidiary;

(d) except in Ontario, a person registered under the securities legislation of a jurisdiction of Canada as an adviser or dealer;

(e) an individual registered under the securities legislation of a jurisdiction of Canada as a representative of a person referred to in paragraph (d);
e.1 an individual formerly registered under the securities legislation of a jurisdiction of Canada, other than an individual formerly registered solely as a representative of a limited market dealer under one or both of the Securities Act (Ontario) or the Securities Act (Newfoundland and Labrador);

(f) except in Ontario, the Government of Canada or a jurisdiction of Canada, or any crown corporation, agency or wholly owned entity of the Government of Canada or a jurisdiction of Canada;

(g) except in Ontario, a municipality, public board or commission in Canada and a metropolitan community, school board, the Comité de gestion de la taxe scolaire de l’île de Montréal or an intermunicipal management board in Québec;

(h) except in Ontario, any national, federal, state, provincial, territorial or municipal government of or in any foreign jurisdiction, or any agency of that government;

(i) except in Ontario, a pension fund that is regulated by the Office of the Superintendent of Financial Institutions (Canada), a pension commission or similar regulatory authority of a jurisdiction of Canada

(j) an individual who, either alone or with a spouse, beneficially owns, directly or indirectly, financial assets, having an aggregate realizable value that before taxes, but net of any related liabilities, exceeds $1,000,000;

(j.1) an individual who beneficially owns financial assets having an aggregate realizable value that, before taxes but net of any related liabilities, exceeds $5 000 000.;

(k) an individual whose net income before taxes exceeded $200,000 in each of the two most recent calendar years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the two most recent calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar year;

(l) an individual who, either alone or with a spouse, has net assets of at least $5,000,000;

(m) a person, other than an individual or investment fund, that has net assets of at least $5,000,000 as shown on its most recently prepared financial statements;

(n) an investment fund that distributes or has distributed its securities only to: (i) a person that is or was an accredited investor at the time of the distribution; (ii) a person that acquires or acquired securities in the circumstances referred to in sections 2.10 [Minimum Amount Investment ] and 2.19 [ Additional Investment in investment funds ] of National Instrument 45-106; or (iii) a person described in paragraph (i) or (ii) that acquires or acquired securities under section 2.18 [Investment fund reinvestment] of National Instrument 45-106;

(o) an investment fund that distributes or has distributed securities under a prospectus in a jurisdiction of Canada for which the regulator or, in Québec, the securities regulatory authority, has issued a receipt;

(p) a trust company or trust corporation registered or authorized to carry on business under the Trust and Loan Companies Act (Canada) or under comparable legislation in a jurisdiction of Canada or a foreign jurisdiction, acting on behalf of a fully managed account, managed by the trust company or trust corporation, as the case may be;

(q) a person acting on behalf of a fully managed account managed by that person, if that person is registered or authorized to carry on business as an adviser or the equivalent under the securities legislation of a jurisdiction of Canada or a foreign jurisdiction, and

(r) a registered charity under the Income Tax Act (Canada) that, in regard to the trade, has obtained advice from an eligibility advisor, or an advisor registered under the securities legislation of the jurisdiction of the registered charity to give advice on the securities being traded;

(s) an entity organized in a foreign jurisdiction that is analogous to any of the entities referred to in paragraphs (a) to (d) or paragraph (i) in form and function;

(t) a person in respect of which all of the owners of interests, direct, indirect or beneficial, except the voting securities required by law to be owned by directors, are persons that are accredited investors;

(u) an investment fund that is advised by a person registered as an advisor or a person that is exempt from registration as an advisor;

(v) a person that is recognized or designated by the securities regulatory authority or, except in Ontario and Québec, theregulator as: (i) an accredited investor; or (ii) an exempt purchaser in Alberta or British Columbia after September 14,2005; or

(w) a trust established by an accredited investor for the benefit of the accredited investor’s family members of which a majority of the trustees are accredited investors and all of the beneficiaries are the accredited investor’s spouse, a former spouse of the accredited investor or a parent, grandparent, brother, sister, child or grandchild of that accredited investor, of that accredited investor’s spouse or of that accredited investor’s former spouse.

YES, I MEET THE CRITERIA NO, I DON'T MEET THE CRITERIA

Êtes-vous un investisseur qualifié?

Si vous répondez à la définition d’« investisseur qualifié » (voir ci-dessous), vous pouvez investir au moins 25 000 $. Veuillez consulter la notice d’offre pour déterminer votre statut de qualification. Les conseillers en placements doivent consulter les politiques internes de leur société.

Le souscripteur, ou un ou plusieurs acheteurs bénéficiaires pour lesquels il agit, est i) résident, ou assujetti à la législation sur les valeurs mobilières en ce qui a trait à l'achat et à la vente de titres, de l'une des provinces ou de l'un des territoires suivants : La Colombie-Britannique, l’Alberta, la Saskatchewan, le Manitoba, l’Ontario, le Québec, Terre-Neuve-et-Labrador, la Nouvelle-Écosse, le Nouveau-Brunswick, l’Île-du-Prince-Édouard, les Territoires du Nord-Ouest ou le Nunavut, et le souscripteur est (et sera, au moment de l’acceptation de la souscription) un investisseur qualifié au sens du Règlement 45-106 sur les dispenses de prospectus (« Règlement 45-106 »), parce que le souscripteur est l’une des personnes suivantes :

a) sauf en Ontario, une institution financière canadienne ou une banque de l’annexe III;

b) sauf en Ontario, la Banque de développement du Canada constituée en vertu de la Loi sur la Banque de développement du Canada (Canada);

c) sauf en Ontario, une filiale d’une personne visée aux paragraphes a) ou b), dans la mesure où celle-ci détient la totalité des actions comportant droit de vote de la filiale, à l’exception de celles que détiennent les administrateurs de la filiale en vertu de la loi;

d) sauf en Ontario, une personne inscrite en vertu de la législation sur les valeurs mobilières d’un territoire du Canada à titre de conseiller ou de courtier;

e) une personne physique inscrite en vertu de la législation en valeurs mobilières d’un territoire du Canada à titre de représentant d’une personne visée au paragraphe d); e.1) une personne physique antérieurement inscrite en vertu de la législation en valeurs mobilières d’un territoire du Canada, à l’exception d’une personne physique antérieurement inscrite seulement à titre de représentant d’un limited market dealer en vertu de la Loi sur les valeurs mobilières de l’Ontario ou du Securities Act de Terre-Neuve-et-Labrador;

f) sauf en Ontario, le gouvernement du Canada ou d’un territoire du Canada, ou une société d’État, un organisme public ou une entité en propriété exclusive du gouvernement du Canada ou d’un territoire du Canada;

g) sauf en Ontario, une municipalité, un office ou une commission publics au Canada et une communauté métropolitaine, une commission scolaire, le Comité de gestion de la taxe scolaire de l’Île de Montréal ou une régie intermunicipale au Québec;

h) sauf en Ontario, tout gouvernement national, fédéral, d’un État, d’une province, d’un territoire ou toute administration municipale d’un pays étranger ou dans un pays étranger, ou tout organisme d’un tel gouvernement ou d’une telle administration;

i) sauf en Ontario, une caisse de retraite réglementée par le Bureau du surintendant des institutions financières du Canada, par une commission des régimes de retraite ou par une autorité de réglementation similaire d’un territoire du Canada;

j) une personne physique qui, à elle seule ou avec son conjoint, a la propriété véritable d’actifs financiers ayant une valeur de réalisation globale avant impôt de plus de 1 000 000 $, déduction faite des dettes correspondantes; j.1) une personne physique qui a la propriété véritable d’actifs financiers ayant une valeur de réalisation globale avant impôt de plus de 5 000 000 $, déduction faite des dettes correspondantes;

k) une personne physique qui, dans chacune des 2 dernières années civiles, a eu un revenu net avant impôt de plus de 200 000 $ ou, avec son conjoint, de plus de 300 000 $ et qui, dans l’un ou l’autre cas, s’attend raisonnablement à excéder ce revenu net dans l’année civile en cours;

l) une personne physique qui, à elle seule ou avec son conjoint, a un actif net d’au moins 5 000 000 $;

m) une personne, à l’exception d’une personne physique ou d’un fonds d’investissement, qui a un actif net d’au moins 5 000 000 $ selon ses derniers états financiers;

n) un fonds d’investissement qui place ou a placé ses titres exclusivement auprès des personnes suivantes : i) une personne qui est ou était un investisseur qualifié au moment du placement; ii) une personne qui souscrit ou a souscrit des titres conformément aux conditions prévues à l’article 2.10 [Investissement d’une somme minimale] ou 2.19 [Investissement additionnel dans un fonds d’investissement] du Règlement 45-106; iii) une personne visée au sous-paragraphe i) ou ii) qui souscrit ou a souscrit des titres en vertu de l’article 2.18 [Réinvestissement dans un fonds d’investissement] du Règlement 45-106;

o) un fonds d’investissement qui place ou a placé ses titres au moyen d’un prospectus visé par un agent responsable dans un territoire du Canada ou, au Québec, par l’autorité en valeurs mobilières;

p) une société de fiducie inscrite ou autorisée à exercer son activité en vertu de la Loi sur les sociétés de fiducie et de prêt (Canada) ou d’une loi équivalente dans un territoire du Canada ou dans un territoire étranger, et agissant pour un compte géré sous mandat discrétionnaire par elle;

q) une personne agissant pour un compte géré sous mandat discrétionnaire par elle si elle est inscrite ou autorisée à exercer l’activité de conseiller ou l’équivalent en vertu de la législation en valeurs mobilières d’un territoire du Canada ou d’un territoire étranger;

r) un organisme de bienfaisance enregistré en vertu de la Loi de l’impôt sur le revenu qui, à l’égard de l’opération visée, a obtenu les conseils d’un conseiller en matière d’admissibilité ou d’un conseiller inscrit en vertu de la législation du territoire de l’acquéreur pour donner des conseils sur les titres faisant l’objet de l’opération visée;

s) une entité constituée dans un territoire étranger dont la forme et la fonction sont analogues à l’une des entités visées aux paragraphes a) à d) ou i);

t) une personne à l’égard de laquelle tous ceux qui ont la propriété de droits, directe, indirecte ou véritable, à l’exception des titres comportant droit de vote que les administrateurs sont tenus de détenir en vertu de la loi, sont des investisseurs qualifiés;

u) un fonds d’investissement qui est conseillé par un conseiller inscrit ou une personne dispensée d’inscription à titre de conseiller;

v) une personne reconnue ou désignée par l’autorité en valeurs mobilières ou, sauf en Ontario et au Québec, par l’agent responsable comme : i) investisseur qualifié; ii) acheteur dispensé en Alberta ou en Colombie-Britannique après le 14 septembre 2005;

w) une fiducie créée par un investisseur qualifié au profit de parents, dont la majorité des fiduciaires sont investisseurs qualifiés, et l’ensemble des bénéficiaires les conjoint, ancien conjoint, père et mère, grands-parents, frères, sœurs, enfants ou petits-enfants de l’investisseur qualifié, de son conjoint ou de son ancien conjoint.

OUI, JE RÉPOND AUX CRITÈRES NON, JE NE RÉPOND PAS AUX CRITÈRES

Êtes-vous un investisseur qualifié?

Si vous répondez à la définition d’« investisseur accrédité » (voir ci-dessous), vous pouvez investir au moins 10 000 $. Veuillez consulter la notice d’offre pour déterminer votre statut de qualification. Les conseillers en placements doivent consulter les politiques internes de leur société.

Le souscripteur, ou un ou plusieurs acheteurs bénéficiaires pour lesquels il agit, est i) résident, ou assujetti à la législation sur les valeurs mobilières en ce qui a trait à l'achat et à la vente de titres, de l'une des provinces ou de l'un des territoires suivants : La Colombie-Britannique, l’Alberta, la Saskatchewan, le Manitoba, l’Ontario, le Québec, Terre-Neuve-et-Labrador, la Nouvelle-Écosse, le Nouveau-Brunswick, l’Île-du-Prince-Édouard, les Territoires du Nord-Ouest ou le Nunavut, et le souscripteur est (et sera, au moment de l’acceptation de la souscription) un investisseur qualifié au sens du Règlement 45-106 sur les dispenses de prospectus (« Règlement 45-106 »), parce que le souscripteur est l’une des personnes suivantes :

a) sauf en Ontario, une institution financière canadienne ou une banque de l’annexe III;

b) sauf en Ontario, la Banque de développement du Canada constituée en vertu de la Loi sur la Banque de développement du Canada (Canada);

c) sauf en Ontario, une filiale d’une personne visée aux paragraphes a) ou b), dans la mesure où celle-ci détient la totalité des actions comportant droit de vote de la filiale, à l’exception de celles que détiennent les administrateurs de la filiale en vertu de la loi;

d) sauf en Ontario, une personne inscrite en vertu de la législation sur les valeurs mobilières d’un territoire du Canada à titre de conseiller ou de courtier;

e) une personne physique inscrite en vertu de la législation en valeurs mobilières d’un territoire du Canada à titre de représentant d’une personne visée au paragraphe d); e.1 une personne physique antérieurement inscrite en vertu de la législation en valeurs mobilières d’un territoire du Canada, à l’exception d’une personne physique antérieurement inscrite seulement à titre de représentant d’un limited market dealer en vertu de la Loi sur les valeurs mobilières de l’Ontario ou du Securities Act de Terre-Neuve-et-Labrador;

f) sauf en Ontario, le gouvernement du Canada ou d’un territoire du Canada, ou une société d’État, un organisme public ou une entité en propriété exclusive du gouvernement du Canada ou d’un territoire du Canada;

g) à l’exception de l’Ontario, une municipalité, un office ou une commission publics au Canada et une communauté métropolitaine, une commission scolaire, le Comité de gestion de la taxe scolaire de l’Île de Montréal ou une régie intermunicipale au Québec;

h) sauf en Ontario, tout gouvernement national, fédéral, d’un État, d’une province, d’un territoire ou toute administration municipale d’un pays étranger ou dans un pays étranger, ou tout organisme d’un tel gouvernement ou d’une telle administration;

i) sauf en Ontario, une caisse de retraite réglementée par le Bureau du surintendant des institutions financières du Canada, par une commission des régimes de retraite ou par une autorité de réglementation similaire d’un territoire du Canada;

j) une personne physique qui, à elle seule ou avec son conjoint, a la propriété véritable d’actifs financiers ayant une valeur de réalisation globale avant impôt de plus de 1 000 000 $, déduction faite des dettes correspondantes; j.1) une personne physique qui a la propriété véritable d’actifs financiers ayant une valeur de réalisation globale avant impôt de plus de 5 000 000 $, déduction faite des dettes correspondantes;

k) une personne physique qui, dans chacune des 2 dernières années civiles, a eu un revenu net avant impôt de plus de 200 000 $ ou, avec son conjoint, de plus de 300 000 $ et qui, dans l’un ou l’autre cas, s’attend raisonnablement à excéder ce revenu net dans l’année civile en cours;

l) une personne physique qui, à elle seule ou avec son conjoint, a un actif net d’au moins 5 000 000 $;

m) une personne, à l’exception d’une personne physique ou d’un fonds d’investissement, qui a un actif net d’au moins 5 000 000 $ selon ses derniers états financiers;

n) un fonds d’investissement qui place ou a placé ses titres exclusivement auprès des personnes suivantes : i) une personne qui est ou était un investisseur qualifié au moment du placement; ii) une personne qui souscrit ou a souscrit des titres conformément aux conditions prévues à l’article 2.10 [Investissement d’une somme minimale] ou 2.19 [Investissement additionnel dans un fonds d’investissement] du Règlement 45-106; iii) une personne visée au sous-paragraphe i) ou ii) qui souscrit ou a souscrit des titres en vertu de l’article 2.18 [Réinvestissement dans un fonds d’investissement] du Règlement 45-106;

o) un fonds d’investissement qui place ou a placé ses titres au moyen d’un prospectus visé par un agent responsable dans un territoire du Canada ou, au Québec, par l’autorité en valeurs mobilières;

p) une société de fiducie inscrite ou autorisée à exercer son activité en vertu de la Loi sur les sociétés de fiducie et de prêt (Canada) ou d’une loi équivalente dans un territoire du Canada ou dans un territoire étranger, et agissant pour un compte géré sous mandat discrétionnaire par elle;

q) une personne agissant pour un compte géré sous mandat discrétionnaire par elle si elle est inscrite ou autorisée à exercer l’activité de conseiller ou l’équivalent en vertu de la législation en valeurs mobilières d’un territoire du Canada ou d’un territoire étranger;

r) un organisme de bienfaisance enregistré en vertu de la Loi de l’impôt sur le revenu qui, à l’égard de l’opération visée, a obtenu les conseils d’un conseiller en matière d’admissibilité ou d’un conseiller inscrit en vertu de la législation du territoire de l’acquéreur pour donner des conseils sur les titres faisant l’objet de l’opération visée;

s) une entité constituée dans un territoire étranger dont la forme et la fonction sont analogues à l’une des entités visées aux paragraphes a à d ou i;

t) une personne à l’égard de laquelle tous ceux qui ont la propriété de droits, directe, indirecte ou véritable, à l’exception des titres comportant droit de vote que les administrateurs sont tenus de détenir en vertu de la loi, sont des investisseurs qualifiés;

u) un fonds d’investissement qui est conseillé par un conseiller inscrit ou une personne dispensée d’inscription à titre de conseiller;

v) une personne reconnue ou désignée par l’autorité en valeurs mobilières ou, sauf en Ontario et au Québec, par l’agent responsable comme : i) investisseur qualifié; ii) acheteur dispensé en Alberta ou en Colombie-Britannique après le 14 septembre 2005;

w) une fiducie créée par un investisseur qualifié au profit de parents, dont la majorité des fiduciaires sont investisseurs qualifiés, et l’ensemble des bénéficiaires les conjoint, ancien conjoint, père et mère, grands-parents, frères, sœurs, enfants ou petits-enfants de l’investisseur qualifié, de son conjoint ou de son ancien conjoint.

OUI, JE RÉPOND AUX CRITÈRES NON, JE NE RÉPOND PAS AUX CRITÈRES
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Contact Next Edge Capital

18 King Street East, Suite 902
Toronto ON M5C 1C4

Telephone: 416.775.3600
Toll-free: 1.877.860.1080
Fax: 416.775.3601
Email: info@nextedgecapital.com

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CMP Next Edge 2025 Critical and Precious Metals Short
Duration Flow-Through Limited Partnership

CMP Next Edge 2025 Critical and Precious Metals Short
Duration Flow-Through Limited Partnership


Presentation

OVERVIEW

Flow-Through Investments Basics

How Flow-Through Share Investing Works
Flow-through shares enable resource companies to raise capital by offering tax advantages to investors. Here is how it works:

  • Issuance of Shares: Canadian resource companies issue flow-through shares.
  • Flow-Through of Tax Deductions: exploration expenses are “flowed through” to shareholders.
  • Investor Tax Deductions: These deductions lower the investor’s taxable income, delivering immediate tax relief.

Our limited partnership (“LP”) structure amplifies this benefit by offering an actively managed flow-through limited partnership, whereby investors enjoy the full pass-through of tax deductions from Resource Companies incurring such Eligible Expenditures across Canada.

Tax Advantages: Understanding Flow-Through Limited Partnerships and Their Tax Benefits
Flow-through limited partnerships (LPs) provide one of Canada’s few remaining tax-sheltering strategies. By investing in flow-through shares, investors benefit from tax deductions that flow-through from the eligible resource investments to the partnership and then in turn to investors.

  • Tax Deductibility: Eligible exploration and development expenditures by resource companies are passed through to the limited partners, making them deductible against other income.
  • Diversity in Investment: Investors gain exposure to sectors such as energy, precious metals, and minerals while benefiting from reduced tax obligations.
  • Efficiency of Returns: Flow-through partnerships are often structured to allow for over 100% tax efficiency. For each dollar invested, flow-through deductions may yield significant tax relief, especially for investors in higher marginal tax brackets.
  • Capital Gains Treatment on Distributions: Upon the sale of investments in the Fund’s portfolio, gains are often taxed at favourable capital gains rates.
  • Minimum Tax Avoidance: Flow-through deductions reduce taxable income, potentially avoiding the Alternative Minimum Tax (AMT) that affects high-income earners.

Through our fund, Canadian investors can have the potential to achieve the dual benefit of enhanced returns on resource investments and notable tax savings.

How Flow-Through Share Investing Works

Flow-through shares enable resource companies to raise capital by offering tax advantages to investors.

Here is how it works:

  • Issuance of Shares: Canadian resource companies issue flow-through shares.
  • Flow-Through of Tax Deductions: Exploration expenses are “flowed through” to shareholders.
  • Investor Tax Deductions: These deductions lower the investor’s taxable income, delivering immediate tax relief.

Our limited partnership (“LP” ) structure amplifies this benefit by offering an actively managed flow-through limited partnership, whereby investors enjoy the full pass-through of tax deductions from Resource Companies incurring such Eligible Expenditures across Canada.

Flow-Through Shares: A Made In Canadian Investment

Flow-through investment is a unique Canadian investment vehicle offering investors tax benefits. Primarily used in the resource sector (mining, oil, and gas), it allows companies to transfer certain exploration expenses to investors, who can in turn then claim these expenses as deductions on their personal income tax returns.

Investing in flow-through shares helps fund exploration and development activities in the resource sector, contributing to the Canadian economy. This flow-through investment mechanism enables the issuing corporation to transfer Eligible Expenditures to the investor. Companies in the mining, oil and gas, renewable energy, and energy conservation sectors can issue flow-through shares (“FTS’”) to support their exploration and project development efforts.

Based on the information provided by the Prospectors & Developers Association of Canada (PDAC), flow-through share financing contributes nearly 70% of the funds raised on Canadian stock exchanges for exploration across the country, generating significant exploration activity within Canadian borders.1

Benefit for Investors

  1. Tax Efficiency: The primary benefit of flow-through shares is the ability to deduct the full amount of the investment against income. Investors may enjoy even greater deductions or tax credits in provinces with additional incentives, such as British Columbia, Quebec, or Ontario.
  2. Capital Gains Deferral: Upon the sale of the Flow-Through LP Units, investors will realize a capital gain. Many issuers allow the LP units to roll into a mutual fund corporation that allows for the deferral of this capital gains tax until those units are sold. In addition, if capital gains are realized on the sale of the units, the proceeds can often be reinvested in other tax-advantaged accounts or investments, such as a new flow-through LP offering, further deferring taxation.
  3. Portfolio Diversification: Flow-through shares offer exposure to the resource sector, which is typically underrepresented in traditional portfolios. This has the potential to enhance diversification and hedge against market volatility in other industries.2
  4. Community and Economic Impact: Investing in flow-through shares supports the development of critical infrastructure and resource projects, often in remote or underserved regions of Canada.
  5. Flow-Through Investing via a Limited Partnership (LP): These pooled offerings provide for professional management, portfolio diversification, and administrative simplicity, making it an attractive option for investors seeking tax-efficient exposure to resource exploration.

Through our LP, Canadian investors can have the potential to achieve the dual benefit of enhanced returns on resource investments and notable tax savings.

Download here our Educational Piece to learn more about flow-through investing.

1. Prospectors & Developers Association of Canada (PDAC), 2024
2. https://www.goldmansachs.com/insights/articles/which-commodities-are-the-best-hedge-for-inflation

Investment Objectives

The CMP Next Edge 2025 Critical and Precious Metals Short Duration Flow-Through Limited Partnership Portfolio’s investment objective is to provide holders of Units (“Limited Partners”) with capital appreciation and a tax-assisted investment in a diversified portfolio of Resource Sector Flow-Through Shares and additional securities, if any, that offer attractive risk-reward characteristics, and which primarily derive revenue from activities incurring Eligible Expenditures in the mining and energy sector. CMP Next Edge Critical and Precious Metals Short Duration Flow-Through Limited Partnership’s Portfolio will focus on Resource Companies incurring such Eligible Expenditures across Canada.

The Opportunity

Why Invest in the CMP Next Edge 2025 Critical and Precious Metals Short Duration Flow-Through Limited Partnership

  • Significant Tax Deductions and Tax Credits: One of the primary benefits of investing in flow-through funds is the ability to claim tax deductions and credits. In addition to the Canadian Exploration Expense (“CEE”) 100% Tax Deduction, the Partnership is targeting an allocation of at least 75% of the portfolio to flow-through issuers exploring for critical minerals, which are eligible for the 30% Critical Mineral Exploration Tax Credit (CMETC), and at least 25% to issuers exploring for precious metals, which qualify for the 15% Mineral Exploration Tax Credit (METC). This can result in substantial tax savings, particularly for high-net-worth individuals.
  • Strong History in the Resource and Flow-Through Sector in Canada: The CMP® flow-through business has been responsible for raising over $3.1 billion in flow-through investments (the most by any Flow-Through Firm in Canada) since 1984.
  • Experienced Team: The Partnership will leverage the Portfolio Manager’s extensive experience in the mining sector, who has participated in over 200 private placement mining deals since 2016. In addition, the Partnership will leverage the General Partner’s deep understanding of the resource and flow-through market.
  • Strong Deal Sourcing and Origination Network: The Portfolio Manager, in addition to the General Partner, possesses a very extensive network of referral sources, providing superior access to potential deal flow across Canada.
  • Supporting Canada and Canada’s Resource Sector: Investing in flow-through funds directly supports the growth of Canada’s resource sector. These investments provide critical funding for exploration projects, contributing to the discovery of new resources and the development of the country’s natural resource industries leading to job creation and significant revenues.

The Fund

Our Approach to Flow-Through Investing
The CMP Next Edge 2025 Critical and Precious Metals Short Duration Flow-Through Limited Partnership will invest in flow-through shares of resource companies engaged in mining and energy exploration, particularly in critical and precious metals (including, but not limited to, gold, silver, copper, nickel, and zinc). Investment selection is based on a variety of metrics which include resource quality, management experience, financial health, infrastructure access, and environmental considerations. Investors can claim 100% deductions on eligible exploration expenses, along with potential additional investment tax credits.

Investment Criteria When Selecting Resource Companies:

  • Resource Quality and Quantity: The potential investment in question must have a demonstrated geological potential.
  • Management Team: The Partnership will seek to invest in Resource Companies with experienced and reputable leadership.
  • Infrastructure: The Partnership will seek to invest in assets that feature proximity to essential infrastructure and logistics that will support the operations.
  • Financial Health: The Partnership will seek to invest in Resource Companies that are in good financial health, with robust funding and a sustainable financial position.
  • Cost Structure: The Partnership will seek to invest in Resource Companies with competitive capital expenditures relative to the industry.
  • Market Conditions: The Partnership will evaluate current and projected commodity prices when selecting investments in Resource Companies.
  • Environmental and Social Impact: The Partnership will seek to invest in accordance with a commitment to sustainability and community relations.
  • Technical Risks: The Partnership will seek to invest in assets that mitigate geological and technical challenges.
  • Exit Strategy: The Partnership will seek to invest in Resource Companies with foreseeable liquidity events and attractive valuations.

Portfolio Manager

Palos Wealth Management Inc.:

Palos Wealth Management (the “Portfolio Manager” or “Palos”) is a Montreal-based wealth and investment management firm with over 20 years of experience providing innovative investment solutions. Palos possesses extensive experience in the small-cap mining sector and has participated in over 200 private placement junior mining deals since 2016.

As a Portfolio Manager, Palos will combine thorough fundamental research with a disciplined, bottom-up approach to investing. Having a deep understanding of the flow-through market and its implications for resource investments, they will prioritize selecting exploration companies that focus on critical minerals, and have experienced leadership, a sustainable financial position, high-grade assets and compliant resource estimates, and feasible infrastructure. With a proven track record in resource-focused investments and a commitment to excellence, Palos is a trusted partner for clients across Canada.

Charles Marleau
Portfolio Manager and Chief Investment Officer

Charles Marleau is the co-founder and director at Palos, where he serves as Chief Investment Officer since 2021. Previously, Charles served as President and Chief Executive Officer of Palos from 2001 to 2021. He leads the management of the Palos Income Fund LP and the Palos Equity Income Fund, and he oversees all other Palos funds. A graduate of McGill University with a BA in Economics, Charles is a Chartered Investment Manager (CIM®) and a seasoned portfolio manager with deep expertise in macroeconomic analysis and market strategy. His contributions to Palos’ weekly investment committee meetings are integral to the firm’s research and risk management processes. Charles has served on the boards of public and private companies and held roles such as honorary treasurer and board member for a prominent Canadian private school. Additionally, he served as a member of the Independent Review Committees (IRCs) for multiple funds.

William Mitchell
Portfolio Manager

William (Bill) Mitchell brings over 25 years of professional trading experience to Palos. After earning his degree from Concordia University, he built a distinguished career at National Bank Financial, where he spent over 12 years as an equity specialist on the Montreal Exchange, and at Desjardins Securities, where he managed proprietary trading portfolios of Canadian and U.S. equities for 10 years. Throughout his career, Bill has honed an exceptional understanding of financial markets, focusing on technical analysis, risk hedging, and options strategies. His disciplined approach emphasizes patience, capital protection, and humility—principles he credits as key to achieving long-term success.

Steven Pavao
Associate Portfolio Manager

Steven Pavao is an Associate Portfolio Manager at Palos and a CFA charterholder with over five years of experience in the wealth management industry. He began his career at RBC, where he worked as an investment associate responsible for a wide array of portfolio management activities, primarily in asset allocation and equity research. Steven graduated from Concordia University’s John Molson School of Business, having majored in Finance with a minor in Entrepreneurship. At Palos, Steven focuses on portfolio management and investment strategy, helping clients achieve their financial goals through tailored approaches that emphasize integrity, transparency, and long-term value.

Fund Type
Limited Partnership
Launch Date
May 27, 2025
Minimum Initial Investment
$5,000 (200 Units)
Management Fee
2.00% per annum
Performance Fees
[20]% of the product of: (a) the number of Units of that Series outstanding on the Performance Bonus Date; and (b) the amount by which the Net Asset Value per Unit of that Series on the Performance Bonus Date (prior to giving effect to the Performance Bonus) plus the total of any distributions per Unit of that Series over the Performance Bonus Term exceeds $26.50 in the case of the Series A Units and $27.48 in the case of the Series F Units. The Performance Bonus will be calculated on the Performance Bonus Date and will be calculated separately for each Series.
Valuation Pricing
Weekly
Auditor
PricewaterhouseCoopers LLP
Administrator and Valuation Agent
SGGG Fund Services Inc.
Transfer Agent and Registrar
TSX Trust Company
Custodian
RBC Investor Services Trust
DISCLAIMER
The "CMP Next Edge 2025 Critical and Precious Metals Short Duration Flow-Through Limited Partnership" or "Fund" means the " CMP Next Edge 2025 Critical and Precious Metals Short Duration Flow-Through Limited Partnership ". Capitalized terms not defined in this presentation are defined as set forth in the prospectus of the Fund (the "Prospectus"). This communication is not, and under no circumstances is to be construed as, an invitation to make an investment in the Fund nor does it constitute a public offering to sell the Fund or any other products described herein. Applications for the Fund will only be considered on the terms of the Prospectus. The Fund is available for purchase by prospective investors of the Agents of the offering and/or the Selling Group only for a limited time period. Each purchaser of the units (the "Units") may have statutory or contractual rights of action under certain circumstances as disclosed in the Prospectus. Please review the provisions of the applicable securities legislation for particulars of these rights.
Terms defined herein shall have the same meaning as in the Prospectus. There is no guarantee that an investment in the Fund will earn any positive return in the short or long-term, nor is there any guarantee that the net asset value per Unit will appreciate or be preserved. An investment in the Units is appropriate only for investors who have the capacity to absorb a loss of some or all of their investment. Investors should review the Prospectus in its entirety for a complete description of the Fund, its risks, and consult their registered dealers before making an investment. See the "Risk Factors" section in the Fund's Prospectus for a discussion of certain factors that should be considered by prospective investors in Units, including with respect to the Fund's use of leverage. The Fund is not a trust company and, accordingly, is not registered under the trust company legislation of any jurisdiction. Class A Units and Class F Units are not "deposits" within the meaning of the Canada Deposit Insurance Corporation Act (Canada) and are not insured under provisions of that Act or any other legislation.
Any descriptions or information involving investment process or strategies is provided for illustration purposes only, may not be fully indicative of any present or future investments, may be changed at the discretion of the Manager and are not intended to reflect performance. The following does not purport to be a complete summary of all of the risks associated with an investment in the Fund. Please see the Fund's Prospectus for a complete listing and description of the risks associated with an investment in the Fund. The Fund is generally exposed to the following risks: Speculative Investments; Reliance on the Portfolio Manager; Sector Risks; Relying on Publicly Available Information; Marketability of Underlying Securities; The Portfolio Will Include Junior Issuers; The Portfolio May Include Unlisted Securities; Premium Pricing, Resale and Other Restrictions Pertaining to Flow-Through Shares; Short Sales; Global Economic Downturn; Trade Sanctions; Volatility; Pandemics; Resale Restrictions May be an Issue if a Liquidity Event is not Implemented; Mutual Fund Shares; Flow-Through Shares and Available Funds; Eligible Expenditures; Available Capital; Liability of Limited Partners; Borrowing; Coverage Ratios; Tax-Related Risks; Lack of Operating History; Financial Resources of the General Partner; Conflicts of Interest; Future Sales; Lack of Separate Counsel; Sector Specific Risks; Fluctuations in Net Asset Value; and Foreign Currency Risk.