UPDATE 1-Sprott Physical Gold Trust sets IPO terms

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Tue Feb 2, 2010 6:01pm EST

* Plans to sell 75 mln units for $10 each

* Plans to list on NYSE Arca and TSX

NEW YORK Feb 2 (Reuters) - Gold investor Sprott Physical Gold Trust on Tuesday set the terms of its initial public offering.

The Toronto, Canada-based company said it hopes to sell 75 million units for $10 each, raising about $750 million at the midpoint.

Sprott invests in gold bullion. It said in a filing with the U.S. Securities and Exchange Commission that it provides an exchange-traded alternative for investors interested in a long-term gold bullion investment.

The company said it would use net proceeds from the IPO to buy gold bullion.

The Trust plans to list on the New York Stock Exchange Arca under the symbol "PHYS" and the Toronto Stock Exchange under the symbol "PHY".

The underwrites are being led by Morgan Stanley and RBC Capital Markets. They have the option to purchase an additional 11.25 million units. (Reporting by Clare Baldwin in New York; Editing by Bernard Orr)

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GoldBullion wrote:
Knowing the current situation of our economy is very crucial. We have to be vigilant as to secure jobs. I hope for a very soon recovery from recession.

Regards,
Gold Bullion

Feb 04, 2010 1:00am EST  --  Report as abuse
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