Central Gold-Trust Closes Public Offering of Approximately US$18,840,250
06 April 2007 - 4:31AM
PR Newswire (US)
TSX SYMBOLS: GTU.UN and GTU.U AMEX SYMBOL: GTU TORONTO, April 5
/PRNewswire-FirstCall/ -- Central Gold-Trust is pleased to announce
that it has completed the sale of 715,000 Units of the Trust at
U.S.$26.35, for gross proceeds of U.S.$18,840,250. The Units were
sold pursuant to a public offering through the Trust's agents CIBC
World Markets Inc., as lead agent, and Cormark Securities Inc.
(formerly Sprott Securities Inc.). The underwritten price of
U.S.$26.35 per Unit for the total of 715,000 Units was non-dilutive
and accretive for the existing Unitholders of Central Gold-Trust.
The bulk of the net proceeds of the offering have been used to
purchase physical gold bullion, in keeping with the investment
policies established by the Board of Trustees of Central
Gold-Trust. The capital raised by this offering is expected to
reduce the operating expense ratio in favour of the Unitholders of
Central Gold-Trust. Units of Central Gold-Trust are eligible
investments for RRSPs, DPSPs, RRIFs, and RESPs and most other North
American retirement accounts. Central Gold-Trust, launched in
April, 2003, is a passive, single purpose, self-governing
closed-end trust, approximately 98% invested in long-term holdings
of gold bullion, substantially in physical international bars, and
does not actively speculate with regard to short-term changes in
gold prices. Gold-Trust's gold bullion is held unencumbered in
allocated, segregated and insured safekeeping in Canada, in the
treasury vaults of the Canadian Imperial Bank of Commerce. The gold
bullion is physically audited by Ernst & Young in the presence
of Gold-Trust Officers and Trustees as well as bank officials. You
may obtain a copy of the prospectus filed in the United States from
CIBC World Markets Corp., Prospectus Department, 425 Lexington
Avenue, 5th Floor, New York, New York 10017, by fax at
212-667-6303, or by e-mail at . You may obtain a copy of the
prospectus in Canada from CIBC World Markets Inc., 161 Bay Street,
Toronto, Ontario, M5J 2S8, fax 416-594-7242. Units are quoted on
the AMEX, symbol GTU and the TSX, symbols GTU.UN (Cdn. $) and GTU.U
(U.S. $). DATASOURCE: Central Gold-Trust CONTACT: see
http://www.gold-trust.com/, write to , fax (905) 648-4196 or
contact J.C. Stefan Spicer, President and CEO at (905) 304-GOLD
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