TORONTO, ONTARIO, May 29 (MARKET WIRE) --
Central GoldTrust (TSX: GTU.U)(TSX: GTU.UN)(NYSE Amex: GTU) of Ancaster,
Ontario is pleased to announce that it has filed a preliminary base shelf
prospectus (the "Prospectus") with the securities commissions in each of
the provinces and territories of Canada, except Quebec, and a
registration statement with the United States Securities and Exchange
Commission. This registration will allow Central GoldTrust to offer and
issue units of Central GoldTrust (the "Units") by way of one or more
Prospectus Supplements at any time during the 25-month period that the
Prospectus remains in place. Central GoldTrust does not presently foresee
authorizing an immediate Unit issue. The purpose of the filing of the
Prospectus is to enable greater efficiency for Unit offerings in the
future when conditions for issuances of Units may be considered as
favorable for existing Unitholders and new subscribers.
Under the Prospectus, the Units may be issued from time to time at the
discretion of Central GoldTrust, with an aggregate offering amount not to
exceed US$800,000,000. Central GoldTrust will only proceed with any such
offerings if they are non-dilutive to the net asset value of the Units
owned by the existing Unitholders of Central GoldTrust. Substantially all
of the net proceeds of any such offerings will be used for gold bullion
purchases, in keeping with the asset allocation provisions outlined in
Central GoldTrust's Declaration of Trust and the related policies
established by its Board of Trustees. Any additional capital raised by
any such offerings is expected to assist in reducing the annual expense
ratio in favour of the Unitholders of Central GoldTrust.
A registration statement relating to these securities has been filed with
the United States Securities and Exchange Commission but has not yet
become effective. The securities may not be sold nor may offers to buy be
accepted prior to the time the registration statement becomes effective.
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 GoldTrust, founded in April 2003, is a passive, self-governing,
single purpose, closed-end trust, which holds approximately 98% of its
net assets in unencumbered, long-term holdings of gold bullion,
substantially all in physical international bars. Central GoldTrust does
not actively speculate with regard to short-term changes in gold prices.
Central GoldTrust's gold bullion is held unencumbered in allocated and
segregated safekeeping in Canada, in the treasury vaults of the Canadian
Imperial Bank of Commerce. The Bank maintains insurance with regard to
its business and bullion storage on such terms and conditions as it
considers appropriate. The gold bullion is physically inspected by Ernst
& Young LLP in the presence of Central GoldTrust's Officers and Trustees
as well as bank officials. Central GoldTrust Units are quoted on the NYSE
Amex LLC with symbol GTU and the TSX with symbols GTU.UN (Cdn.$) and
GTU.U (U.S.$).
Contacts:
Central GoldTrust
J.C. Stefan Spicer
President and CEO
905-304-GOLD (4653)
info@gold-trust.com
www.gold-trust.com
Copyright 2009, Market Wire, All rights reserved.
-0-
