/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES OR DISSEMINATION IN THE UNITED
STATES/
OTTAWA, ON, Nov. 2, 2020 /CNW/ - (TSX: MNT/MNT.U and TSX:
MNS/MNS.U) The Royal Canadian Mint (the "Mint") is
announcing amendments to its Canadian Gold Reserves and Canadian
Silver Reserves exchange-traded receipt ("ETR") programs
(the "Programs") relating to redemptions for physical
gold or silver bullion and liability exceptions pertaining to the
risk of loss of bullion.
Redemption Procedures
Effective as of November 2, 2020,
in circumstances in which a suspension or postponement of
redemptions would otherwise be warranted, the Mint will be
permitted to provide ETR holders redeeming for physical gold or
silver bullion with substituted products. This would occur if the
Mint determines that conditions exist which render impractical the
fabrication, evaluation or sale of gold or silver or certain
physical gold or silver bullion products. In such a circumstance,
the Mint may, in addition to suspending redemptions and postponing
the date of delivery or payment of redemption proceeds, substitute
the physical bullion requested by an ETR holder for a product in
the form requested, but manufactured by a party other than the Mint
with equivalent minimum purity to the product requested, and/or for
a product manufactured by the Mint in a form available under the
applicable Program but different than the form requested. This
amendment is expected to provide flexibility to permit the Mint to
continue to satisfy redemption requests for physical bullion in
circumstances in which redemptions could have otherwise been
suspended or postponed.
Risk of Loss and Excluded Events
Effective as of February 1, 2021,
the Mint is making additions to the list of events pursuant to
which the Mint will not be liable for the loss, damage or
destruction of the gold or silver bullion owned by ETR holders and
held by the Mint. The Mint bears all risk of physical loss, damage
or destruction of gold or silver bullion owned by ETR holders and
stored at the Mint's facility, except for any loss, damage or
destruction as a result of circumstances or causes beyond the
Mint's reasonable control (each, an "Excluded Event"). The
Mint is adding to the list of Excluded Events nuclear reactions,
nuclear radiation, radioactive contamination and bio-chemical
weapons to conform to its insurance policy. As a result, effective
as of February 1, 2021, any loss,
damage or destruction of gold or silver bullion owned by ETR
holders directly or indirectly caused by or contributed to by or as
a result of any nuclear reaction, nuclear radiation, radioactive
contamination or bio-chemical weapon will be the responsibility of
ETR holders and not the Mint.
An investment in ETRs involves a degree of risk. These risks
result primarily from fluctuations in the price of gold or silver,
as applicable. A detailed description of these risks and other
important information about the ETRs and the Programs are contained
in the information statement for the Canadian Gold Reserves program
dated September 17, 2013
(the "Gold Information Statement") and in the
information statement for the Canadian Silver Reserves program
dated October 29, 2012
(the "Silver Information Statement"), which are
available at www.reserves.mint.ca and www.sedar.com. ETR holders
have no recourse to the Mint or the Government of Canada for any loss on their investment.
The ETRs have not been and will not be registered under
the United States Securities
Act of 1933, as amended, and may not be offered or sold in
the United States absent
registration or an applicable exemption from the registration
requirements. This media release shall not constitute an offer to
sell or the solicitation of an offer to buy, nor shall there be any
offer, solicitation or sale of the ETRs in any jurisdiction in
which such an offer, solicitation or sale would be unlawful.
About the Royal Canadian Mint
The Royal Canadian Mint is the Crown corporation responsible for
the minting and distribution of Canada's circulation coins. The Mint is one of
the largest and most versatile mints in the world, offering a wide
range of specialized, high quality coinage products and related
services on an international scale. The Mint has issued
exchange-traded receipts under its Canadian Gold Reserves (TSX:
MNT/MNT.U) and Canadian Silver Reserves (TSX: MNS/MNS.U) programs,
which provide holders with direct legal and beneficial ownership in
physical bullion held in the custody of the Mint at its facilities.
For more information on the Mint, its products and services, visit
www.mint.ca.
SOURCE Royal Canadian Mint