Type Public company Founded 2007 Key people Eric Sprott | Industry Financial Services Headquarters Toronto, Canada | |
Traded as TSX: MLY (trading ceased) | ||
Sprott Molybdenum Participation Corporation was a dedicaded commodity hedge fund created in April 2007 by prominent Canadian investor Eric Sprott to invest in molybdenum assets. The primary investment objective of the Corporation was to achieve capital appreciation by investing in securities of private and public companies that explore for, mine, and process molybdenum. The fund was listed on Toronto Stock Exchange under the ticker MLY.
Investments
The fund purchased shares of both molybdenum miners and the physical metal. Substantial investments were made into shares of Blue Pearl Mining, arguably the world's largest publicly traded, pure play molybdenum producer.
From April 2007, when Sprott raised C$200 million ($167.9 million) to January 2009, prices for molybdenum fell by 57 percent, and the fund’s value plunged 76 percent. As a result, the fund had to liquidate itself and distribute residual assets to shareholders.