/Not for distribution to U.S. news wire services or dissemination in the United States/
OTTAWA, Nov. 29, 2011 /CNW/ - 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.
SOURCE Royal Canadian Mint
For further information:
| Media Inquiries |
Senior Manager, Communications
Royal Canadian Mint
| Investor Relations |
Senior Manager, ETR Compliance &
Royal Canadian Mint