Royal Canadian Mint Announces an Additional Physical Redemption Feature for Gold Exchange-Traded ReceiptsBack to Listing
Not for distribution to U.S. newswire services or dissemination in the United States
OTTAWA, February 27, 2014 – (TSX: MNT/TSX: MNT.U) The Royal Canadian Mint is pleased to announce the addition of an optional feature to its gold Exchange-Traded Receipt (ETR) physical redemption process.
On September 19, 2013 the Mint announced the intent to add the feature. Effective March 17, 2014 an investor opting for a gold physical redemption can opt to have the Mint facilitate the sale of the resulting gold bullion. The proceeds of the sale will be wired to the investor’s brokerage or custodian. The gold price will be determined by the London Bullion Market Association PM Fix price (in US dollars) two business days after the monthly Redemption Date.
An ETR holder opting to use this service will be required to pay a facilitated sale fee of 13 bps (subject to a minimum fee of US$5,000) plus applicable taxes. This fee is in addition to the physical redemption fees.
Existing cash and physical redemption options remain available for investors. Additional information on the redemption process, including this feature, can be found on the program website www.reserves.mint.ca under the heading “Redemption”.
Each ETR provides its holder with direct legal and beneficial ownership in physical gold bullion held in the custody of the Mint at its facilities in Ottawa, Ontario.
An investment in ETRs involves a degree of risk. These risks result primarily from fluctuations in the price of gold. A detailed description of these risks and other important information about the ETRs and the Canadian Gold Reserves program is contained in the information statement dated September 17, 2013 (the “Information Statement”), which is 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. An ISO 9001-2008 certified company, the Mint is recognized as 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.
This release contains forward-looking information within the meaning of applicable securities laws in Canada ("forward-looking information"). The forward-looking information in this release includes, without limitation, the Mint's intention to offer an additional optional service under its physical redemption program. All forward-looking information is given pursuant to the safe harbour provisions of applicable Canadian securities legislation. The words "anticipates", "believes", "budgets", "could", "estimates", "expects", "forecasts", "intends", "may", "might", "plans", "projects", "schedule", "should", "will", "would" and similar expressions are often intended to identify forward-looking information, although not all forward-looking information contains these identifying words. The forward-looking information reflects management's current beliefs and is based on assumptions developed using information currently available to the Mint's management. Although the Mint believes that the forward-looking statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of risks and uncertainties. For additional information on risk factors that have the potential to affect the ETRs, the Canadian Gold Reserves program or the Mint, reference should be made to the Information Statement, which may be accessed in the manner described above. Except as required by law, the Mint undertakes no obligation to revise or update any forward-looking information as a result of new information, future events or otherwise after the date hereof.
For more information, please contact:
Senior Manager, Communications
Royal Canadian Mint
Canadian Gold and Silver reserves
Royal Canadian Mint