Central Fund Announces Proposed Offering
November 09 2009 - 4:06PM
Marketwired
Central Fund of Canada Limited ("Central Fund") (TSX: CEF.A)(TSX:
CEF.U)(NYSE Amex: CEF) of Calgary, Alberta announced today that it
plans to offer Class A Shares of Central Fund to the public in
Canada (except Quebec) and in the United States under its existing
U.S.$1,000,000,000 base shelf prospectus dated September 8, 2009
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 Fund will only
proceed with the offering if it is non-dilutive to the net asset
value of the Class A Shares owned by the existing Shareholders of
Central Fund.
The amount of U.S.$1,000,000,000 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 and silver bullion purchases, in keeping with the
asset allocation policies established by the Board of Directors of
Central Fund. Any additional capital raised by this offering is
expected to assist in reducing the annual expense ratio in favour
of the Shareholders of Central Fund.
Central Fund 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 any other documents Central Fund 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 Fund and this offering. You may obtain a copy of the
base shelf prospectus 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
useprospectus@us.cibc.com. You may obtain a copy of the base shelf
prospectus filed in Canada from CIBC, fax 416-594-7242 or request a
copy by telephone at 416-594-7270.
Statements contained in this release that are not historical
facts are forward-looking statements that involve risks and
uncertainties. Central Fund'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 Central Fund'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. Central Fund's bullion holdings are stored unencumbered
in allocated and segregated safekeeping in Canada, in the treasury
vaults of the Canadian Imperial Bank of Commerce. The gold and
silver bullion is physically inspected by Ernst & Young LLP in
the presence of Central Fund's Directors and Officers as well as
bank officials. Class A Shares are quoted on the NYSE Amex LLC
symbol CEF and on the TSX, symbols CEF.A (Cdn. $) and CEF.U (U.S.
$).
Contacts: Central Fund of Canada Limited J.C. Stefan Spicer
President and CEO 905-648-7878 info@centralfund.com
www.centralfund.com
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