TORONTO, ONTARIO, Nov 10 (MARKET WIRE) --
Central Fund of Canada Limited ("Central Fund") (TSX: CEF.A)(TSX:
CEF.U)(NYSE Amex: CEF) is pleased to announce that a syndicate of
underwriters (the "Underwriters") led by CIBC have exercised their right
to purchase an additional 1,475,000 Class A Shares at a price of
U.S.$13.56 per Class A Share, for additional gross proceeds of
approximately U.S.$20 million to Central Fund. The Underwriters agreed
earlier this morning to purchase 15,500,000 Class A Shares for gross
proceeds of approximately U.S.$210 million.
The purchase price of U.S.$13.56 per Class A Share was non-dilutive and
accretive for the existing Shareholders of Central Fund. The additional
net proceeds have been committed to purchase gold and silver bullion for
settlement at closing, in keeping with the asset allocation policies
established by the Board of Directors of Central Fund. This underwriting
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 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
Copyright 2009, Market Wire, All rights reserved.
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