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Not for distribution to U.S. newswire services or dissemination in the United States
OTTAWA, Ontario – September 20, 2013 – (TSX: MNS/ TSX: MNS.U) The Royal Canadian Mint is announcing the issuance of 15,994 Silver Exchange-Traded Receipts ("Silver ETRs") following completion of the exercise of 2013 Purchase Rights ("Purchase Rights") under the Mint's Canadian Silver Reserves Program. A total of 11,680 Purchase Rights were exercised at a price of C$20.00 (the "Exercise Price") for gross proceeds of C$233,600. The newly issued Silver ETRs will commence trading today on the Toronto Stock Exchange in Canadian and U.S. dollars under the symbols "MNS" and "MNS.U", respectively.
TD Securities Inc. and National Bank Financial Inc. managed a broad soliciting dealer group to facilitate the exercise of the Purchase Rights. The Mint's expenses related to the exercise of Purchase Rights, including soliciting dealer fees, were C$0.40 per C$20.00 Purchase Right (2% of the Exercise Price). After deducting expenses associated with the exercise of the Purchase Rights, net proceeds of C$228,928 were applied today to purchase an aggregate of approximately 9,872 ounces of silver bullion on behalf of Silver ETR holders who exercised Purchase Rights, at a weighted average spot price of silver of US$22.53 per ounce. Today's per Silver ETR entitlement to silver is 0.617093 troy ounce of silver.
For additional details regarding the now-expired 2013 Purchase Right, please consult the Purchase Right Notice dated August 28, 2013, which can be found at www.reserves.mint.ca and www.sedar.com. The London silver fix and the daily calculation of the per Silver ETR entitlement to silver, the net asset value and the net asset value per Silver ETR are available on the Canadian Silver Reserves Program website at www.reserves.mint.ca. For reference, the London fix price of silver established by London Silver Market Fixing Ltd. at 7:00 a.m. (ET) today was US$22.74 per ounce.
Each Silver ETR provides direct legal and beneficial ownership in physical silver bullion held in the custody of the Mint. Subject to certain restrictions, Silver ETR holders are entitled to redeem their Silver ETRs for physical silver products in the form of 99.99 per cent pure silver coins, 99.9 per cent pure silver bars or for cash. Each ETR also includes the 2014 Purchase Right, which entitles its holder to purchase additional ETRs on September 18, 2014 based on the spot price of silver on or shortly after such date.
The Silver 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 Silver ETRs in any jurisdiction in which such offer, solicitation or sale would be unlawful.
An investment in Silver ETRs involves a degree of risk. These risks result primarily from fluctuations in the price of silver. A detailed description of these risks and other important information about the Silver ETRs and the Canadian Silver Reserves Program is contained in the Amended and Restated Information Statement dated October 29, 2012 (the "Information Statement") which can be found at www.reserves.mint.ca and www.sedar.com. Silver ETR holders will have no recourse to the Mint or the Government of Canada for any loss on their investment.
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For more information, please contact:
Senior Manager, Communications
Royal Canadian Mint
Senior Manager, Canadian Gold and Silver Reserves
Royal Canadian Mint