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Not for distribution to U.S. newswire services or dissemination in the United States
OTTAWA, September 19, 2013 – (TSX: MNT/TSX: MNT.U) The Royal Canadian Mint is pleased to announce that it has completed a private placement of 6,000,000 exchange-traded receipts (“ETRs”) under the Mint’s Canadian Gold Reserves program at a price of C$15.17 per ETR (the “Offering”) for gross proceeds of C$91,029,559. The newly-issued ETRs have been listed on the Toronto Stock Exchange and are fully fungible with all other outstanding ETRs. The Offering was made on a prospectus-exempt basis in reliance on orders from the Ontario Securities Commission dated August 30, 2011 and October 12, 2012.
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. After deducting the expenses of the Offering, net proceeds of C$90,847,868 million were applied today to purchase an aggregate of 64,990.568 ounces of gold bullion on behalf of the purchaser of the ETRs, based on the London P.M. fix price of gold of US$1365.50 per ounce and the Bank of Canada noon rate of US$1.00/C$1.0237. The newly-issued ETRs have a per ETR entitlement to gold that is the same as all other outstanding ETRs, which as of today's date is 0.0108318 of one fine troy ounce.
Further, the Mint announces that it intends to offer an additional optional service under the physical redemption program to facilitate the liquidation of physical gold bullion. ETR holders opting to use this service will be required to pay a facilitation fee of approximately 13 bps of the physical gold liquidated (subject to a minimum fee), which would be in addition to other fees incurred pursuant to a physical redemption. This additional optional service is expected to be offered by the Mint commencing March 17, 2014 and will be available to any ETR holders opting for a physical redemption of their gold ETRs.
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, statements regarding the terms of the Offering and 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.
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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