TORONTO, Feb. 27, 2012 /CNW/ - Sprott Physical Gold Trust (the "Trust")
(NYSE: PHYS) (TSX: PHY.U), a trust created to invest and hold
substantially all of its assets in physical gold bullion and managed by
Sprott Asset Management LP, today announced that the underwriters for
the previously announced follow-on public offering (the "Offering") of
units ("Units") of the Trust have purchased an additional 3,000,000
Units in connection with the exercise of their over-allotment option.
Including this exercise of the over-allotment option, the gross proceeds
of the Offering were US$349,370,000, consisting of 23,000,000 Units
offered at US$15.19 per Unit.
The Trust will use the net proceeds of this Offering to acquire physical
gold bullion in accordance with the Trust's objective and subject to
the Trust's investment and operating restrictions described in the
prospectus related to this Offering. The net proceeds of the Offering
per Unit are greater than 100% of the most recently calculated net
asset value per Unit of the Trust prior to pricing of the Offering, as
required under the trust agreement governing the Trust.
The Units are listed on the NYSE Arca and the Toronto Stock Exchange
under the symbols "PHYS" and "PHY.U", respectively. The Offering was
made simultaneously in the United States and Canada by underwriters led
by Morgan Stanley and RBC Capital Markets in the United States and RBC
Capital Markets and Morgan Stanley in Canada.
This news release does not constitute an offer to sell or a solicitation
of an offer to buy the Units, nor shall there be any sale of the Units
in any state or jurisdiction in which such an offer, solicitation or
sale would be unlawful prior to registration or qualification under the
securities laws of any such jurisdiction.
Additional details on the Trust can be found in the final prospectus
available on EDGAR (www.sec.gov/edgar.shtml) and SEDAR (www.sedar.com) or on the Trust's website at www.sprottphysicalgoldtrust.com.
SOURCE Sprott Physical Gold Trust
For further information:
Investor contact information:
Telephone: (416) 203-2310
Toll Free: 1 (877) 403-2310