TORONTO, Dec. 16, 2015 /PRNewswire/ - Central
GoldTrust ("GoldTrust") (symbol: TSX - GTU.UN (C$) and GTU.U (US$);
NYSE MKT - GTU (US$)) announced today that GoldTrust has entered
into an agreement (the "Letter Agreement") with, among
others, Purpose Investments Inc. ("Purpose") and Sprott
Asset Management Gold Bid LP, pursuant to which Purpose has
terminated the definitive agreement, dated November 26, 2015 (the "Purpose
Agreement"), among GoldTrust, Purpose, Silver Administrators
Ltd., Silver Bullion Trust and Central Gold Managers Inc., with
respect to GoldTrust and its proposed conversion to an exchange
traded fund.
Pursuant to the Letter Agreement, GoldTrust has agreed to
reimburse Purpose for its expenses relating to the transaction with
GoldTrust in an amount not exceeding $200,000 plus applicable taxes. GoldTrust and
Purpose have also agreed, among other things, not to threaten,
commence or participate in any claim or proceedings against the
other relating to the Purpose Agreement. GoldTrust and Purpose have
agreed that neither party has any further obligations or
liabilities to each other under the Purpose Agreement.
In connection with the Letter Agreement, GoldTrust announced
that it will cancel the special meeting of GoldTrust unitholders
scheduled for January 26, 2016 (the
"January 26 Meeting").
The special meeting of GoldTrust unitholders to be held on
January 15, 2016 (the
"January 15 Meeting") will
continue as scheduled.
GoldTrust expects to mail unitholders a management information
circular in connection with the January
15 Meeting in advance of such meeting, in accordance with
applicable securities laws.
About Central GoldTrust
GoldTrust (established on April 28,
2003) is a passive, self-governing, single purpose trust,
which invests primarily in long-term holdings of gold bullion and
does not speculate in gold prices. At December 7, 2015, the GoldTrust units were 99.99%
invested in unencumbered, allocated and physically segregated gold
bullion. Units may be purchased or sold on the Toronto Stock
Exchange and NYSE MKT.
Additional Information and Where to Find It
Filings made by GoldTrust with Canadian securities regulatory
authorities may be obtained without charge at http://www.sedar.com,
and filings made by GoldTrust with the United States Securities and
Exchange Commission may be obtained without charge at
http://www.sec.gov.
Forward-Looking Statements
Certain statements contained in this press release constitute
"forward-looking statements" under United
States federal securities laws and "forward-looking
information" under Canadian securities laws (collectively,
"Forward-Looking Statements"), including those related to
the termination of the Purpose Agreement, the intention of
GoldTrust to cancel the January 26
Meeting, the intention of GoldTrust to hold the January 15 Meeting and the expected mailing of
the management information circular in connection with the
January 15 Meeting.
GoldTrust cautions investors about important factors that could
cause actual results or outcomes to differ materially from those
expressed, implied or projected in such Forward-Looking Statements.
Such Forward-Looking Statements involve projections, estimates,
assumptions, known and unknown risks and uncertainties which could
cause actual results or outcomes to differ materially from those
expressed in such Forward-Looking Statements or otherwise be
materially inaccurate. No assurance can be given that these
projections, estimates, expectations or assumptions will prove to
be correct and any Forward-Looking Statements included in this
press release should not be unduly relied upon. These
Forward-Looking Statements speak only as to GoldTrust's beliefs,
views, expectations and opinions as of the date of this press
release. Except as required by applicable securities laws,
GoldTrust does not intend and does not assume any obligations to
update or revise these Forward-Looking Statements, whether as a
result of new information, future events or otherwise. In addition,
this press release may contain Forward-Looking Statements drawn
from or attributed to third party sources. Factors that could cause
or contribute to such differences include, but are not limited to,
those risks detailed in GoldTrust's filings with the Canadian
securities regulatory authorities and the United States Securities
and Exchange Commission.
SOURCE Central GoldTrust