Royal Canadian Mint ETR Begins Trading on TSXBack to Listing
OTTAWA, November 29, 2011 - The Royal Canadian Mint is pleased to announce the closing of the initial public offering of the Canadian Gold Reserves' Exchange Traded Receipts (ETRs). The ETRs commenced trading today on the Toronto Stock Exchange (TSX) under the ticker symbol MNT in Canadian dollars and MNT.U in US dollars. Thirty million ETRs were issued at a price of CAD$20.00 per ETR (or the U.S. dollar equivalent $19.29) raising gross proceeds of CAD$600 million.
"The tremendous response to the Mint's Canadian Gold Reserves ETR program is a compelling endorsement of this product as a convenient, economical and secure way to invest in gold," said Ian E. Bennett, President and CEO of the Royal Canadian Mint. "By selling a security representing direct ownership to physical gold stored at the Mint, we have creatively leveraged our 100 year-old gold refining and storage expertise to help investors confidently own gold."
After deducting the Agents' fee and expenses of the offering, net proceeds of CAD$579.4 million were applied to purchase gold bullion on behalf of the purchasers of the ETRs, at today's London pm fix gold price of US$1,717 per ounce. Accordingly, at the closing of the offering, ETR holders owned an aggregate amount of gold equal to 327,010 ounces, resulting in a per ETR entitlement to gold of 0.0109003 ounces. This information as well as future daily calculations of the per ETR entitlement to gold and the net asset value per ETR will be available on the Canadian Gold Reserves' website at www.reserves.mint.ca.
Each ETR provides evidence of ownership in physical gold bullion held in the custody of the Mint at its facilities in Ottawa, Ontario. The Canadian Gold Reserves program marks the expansion of the Mint's successful core bullion and refinery business.
Unlike other gold investment products, the purchaser of an ETR owns the actual gold rather than a unit or share in an entity that owns the gold. Subject to certain restrictions, ETR holders are entitled to redeem their ETRs for physical gold products in the form of 99.99 per cent pure gold bars or coins, or for cash based on the lesser of the gold price on the redemption date and the market price of the ETRs.
The ETRs were distributed by a syndicate of Agents, on a best efforts basis, co-led by TD Securities Inc. and National Bank Financial Inc., and included BMO Nesbitt Burns Inc., CIBC World Markets Inc., RBC Dominion Securities Inc., Canaccord Genuity Corp., Cormark Securities Inc., MGI Securities Inc., and Raymond James Ltd.
The ETRs have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and were not offered or sold in the United States.
Note: An investment in the 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 ETR program is contained in the amended and restated Information Statement dated November 23, 2011. A prospective investor in ETRs should review and carefully consider the risks described in the Information Statement, a copy of which is available on the Canadian Gold Reserves' web site at www.reserves.mint.ca. ETR holders will have no recourse to the Mint or the Government of Canada for any loss on their investment.
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. For more information on the Mint, its products and services, visit www.mint.ca.
For more information, please contact:
|Media Inquiries||Investor Relations|
|Alex Reeves||Steve Higgins|
|Senior Manager, Communications||Senior Manager, ETR Compliance & Investor Relations|
|Royal Canadian Mint||Royal Canadian Mint|