SIGNATURES
Pursuant
to the requirements of the Securities Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly
authorized.
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CENTRAL
FUND OF CANADA LIMITED
(Registrant)
|
Date: March 5,
2008
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By: /s/ J.C.
STEFAN SPICER
_______________________________
(Signature)
J.C. Stefan Spicer,
President & CEO
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CENTRAL FUND OF CANADA LIMITED
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FOR IMMEDIATE RELEASE
on
March 5, 2008
to
Marketwire and U.S. Disclosure Circuit
TSX SYMBOLS: CEF.A and CEF.U
AMEX SYMBOL: CEF
CENTRAL FUND CLOSES APPROXIMATELY US$57 MILLION SHARE
ISSUE
TORONTO, Ontario (March 5, 2008)
- Central
Fund of Canada Limited (“Central Fund”) of Calgary, Alberta announced today
that it has completed the sale of 4,318,181 non-voting, fully participating Class A
Shares of Central Fund at a price of U.S.$13.20 to CIBC World Markets Inc. (the
“Underwriter”), raising total gross proceeds of U.S. $56,999,989.20. The
Class A Shares offered were primarily sold to investors in Canada and in the United
States under the multijurisdictional disclosure system.
The
underwritten price of U.S.$13.20 per Class A Share was non-dilutive and accretive for
the existing shareholders of Central Fund. In accordance with its investment policies,
Central Fund has invested substantially all of the net proceeds of the issue (after
deducting fees payable to the Underwriter and expenses of the issue) in gold and silver
bullion, with the balance of the net proceeds reserved for additional bullion purchases
and working capital purposes. It is anticipated that the additional capital raised by
the issue will assist Central Fund’s objective of reducing the annual expense
ratio in favour of all shareholders.
The
new total of issued and outstanding Class A Shares of Central Fund is 129,452,713. The
investment holdings of Central Fund are now represented by approximately 830,585 fine
ounces of gold, 41,523,556 ounces of silver and U.S.$29,017,158 in cash.
The
Class A Shares of Central Fund are qualified investments for RRSPs, DPSPs, RRIFs, RESPs
and RDSPs. The Class A Shares are also eligible investments in the United States for
various regulated investors and accounts.
The
Class A Shares of Central Fund have been listed on the Toronto Stock Exchange
(CEF.A/CEF.U) since 1966 and on the AMEX (CEF) since 1986. They may be purchased on
either stock exchange by worldwide investors.
Central Fund has filed with the Canadian securities regulatory
authorities and the United States Securities and Exchange Commission ("SEC") a third
prospectus supplement dated February 27, 2008, to the base shelf prospectus and
registration statement dated September 29, 2006 which will serve to qualify the
offering to which this communication relates. Before you invest, you should read the
base shelf prospectus, the third 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 and
the third prospectus supplement 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 and the third
prospectus supplement 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.
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.$).
For further information, please contact J.C. Stefan Spicer, President
and CEO at 905-648-7878. Website:
www.centralfund.com
. Email:
info@centralfund.com
.