Traditional Flow-Through Limited Partnerships usually have a life span of 18-24 months. The traditional flow-through limited partnerships then roll into a publicly traded mutual fund to provide Investors with liquidity.
The Cordillera Minerals Flow-Through Limited Partnerships structure provides early liquidity to Investors within 12 months or less from the date of their initial investment. Each of the securities in the public companies is subject to a minimum hold period of four months from date of the Partnership placement before becoming free trading shares. The Partnership also is required to hold the shares through one calendar year. On the Liquidity date, the Partnership will electronically deposit, on a pro-rata basis, the shares received in the Limited Partnership Portfolio directly into the securities accounts of each individual investor.
The short-term duration allows for investors to use their Mineral Issuer securities for additional tax planning options. For example; an RRSP contribution (receive an additional tax deduction using the securities), a contribution to a TFSA, or a contribution to a Charitable Foundation. The investor has the option to decide when to sell their securities at any time. There is a deemed disposition when the investor either sells their shares or contributes the securities to their RRSP.