Central Fund Enters Underwriting Agreement
February 27 2008 - 9:23AM
Marketwired
TORONTO, ONTARIO ")(TSX: CEF.A)(TSX: CEF.U)(AMEX: CEF) of
Calgary, Alberta announced today that it has entered into an
agreement with CIBC World Markets Inc. under which the underwriter
has agreed to buy and sell to the public, in Canada and in the
United States under the multijurisdictional disclosure system,
4,318,181 Class A Shares of CFOC. The offering will be made under a
third prospectus supplement to CFOC's US$250,000,000 base shelf
prospectus dated September 29, 2006.
The purchase price of U.S.$13.20 per Class A Share is expected
to result in gross proceeds of approximately U.S.$57 million.
Substantially all the net proceeds of the offering have been
committed to purchase gold and silver bullion, in keeping with the
investment policies established by the board of directors of CFOC,
for settlement at closing of the issue. The additional capital is
expected to reduce the annual expense ratio in favour of the
shareholders of CFOC.
Closing is expected to occur on or about March 5, 2008.
CFOC has filed a base shelf prospectus and registration
statement with the Canadian securities regulatory authorities and
the United States Securities and Exchange Commission ("SEC") which
will serve as the base for the offering to which this communication
relates. Before you invest, you should read the base shelf
prospectus including any prospectus supplement and any other
documents the Company 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 the Company and this
offering. You may obtain a copy of the base shelf prospectus filed
in the United States from CIBC World Markets Corp., 300 Madison
Avenue, New York, New York 10017 or request a copy by telephone at
212-667-7014. You may obtain a copy of the base shelf prospectus in
Canada from CIBC World Markets Inc., fax 416-594-7242 or request a
copy by telephone at 416-594-7270. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy
nor shall there be any sale of these securities in any state in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state.
Statements contained in this release that are not historical
facts are forward-looking statements that involve risks and
uncertainties. CFOC's actual results could differ materially from
those expressed or implied by such forward-looking statements.
Factors that could cause or contribute to such differences include,
but are not limited to, those risks detailed in the company's
filings with the Canadian securities regulatory authorities and the
SEC.
Central Fund of Canada Limited (est. 1961) is an exchange
tradeable refined gold and silver bullion holding company. Class A
Shares are qualified for inclusion in many North American regulated
accounts. Bullion holdings are stored on an unencumbered,
allocated, segregated and insured basis in the treasury vaults of a
major Canadian bank and are audited semi-annually in the presence
of Central Fund's auditors and bank representatives. Class A Shares
are quoted on the AMEX, symbol CEF and the TSX, symbol CEF.A
(Cdn.$) and CEF.U (U.S.$).
Contacts: Central Fund of Canada Limited J.C. Stefan Spicer
President and CEO (905) 648-7878 Email: info@centralfund.com
Website: www.centralfund.com
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