Central GoldTrust Announces Proposed Offeringadmin
May 6, 2009 Filed Under: Mining Stocks, Precious Metal
Central GoldTrust of Ancaster, Ontario announced that it plans to offer Units of Central GoldTrust to the public in Canada (except Quebec) and the United States under its existing U.S.$250,000,000 base shelf prospectus dated December 19, 2008 and filed with the securities commissions in each of the provinces and territories of Canada, except Quebec, and under the multijurisdictional disclosure system in the United States pursuant to a proposed underwritten offering by CIBC. Central GoldTrust will only proceed with the offering if it is non-dilutive to the net asset value of the Units owned by the existing Unitholders of Central GoldTrust.
The remaining amount of approximately U.S.$212 million of the original U.S.$250 million provided for in the base shelf prospectus is available for this offering.
Substantially all of the net proceeds of the offering will be used for gold bullion purchases, in keeping with the asset allocation provisions outlined in GoldTrust’s Declaration of Trust and the related policies established by its Board of Trustees. Any additional capital raised by the offering is expected to assist in reducing the annual expense ratio in favour of the Unitholders of Central GoldTrust.
Central GoldTrust has filed a base shelf prospectus and registration statement with the Canadian securities regulatory authorities (except Quebec) and the United States Securities and Exchange Commission (”SEC”) for the offering to which this communication relates. Before you invest, you should read the base shelf prospectus and prospectus supplement and any other documents Central GoldTrust has filed with the securities commissions in each of the provinces and territories of Canada, except Quebec, and the SEC for more complete information about Central GoldTrust and this offering. You may obtain a copy of the base shelf prospectus and prospectus supplement filed in the United States from CIBC World Markets Corp. 425 Lexington Avenue, 5th Floor, New York, New York, 10017, by fax at 212-667-6303 or by e-mail at email@example.com. You may obtain a copy of the base shelf prospectus and prospectus supplement filed in Canada from CIBC, fax 416-594-7242 or request a copy by telephone at 416-594-7270.