Significant PR for PM marketplace.....This just hit the newswires & I decided to passit on as a "general" interest item. It could have an significant impact on PM bullion prices in the near future ---- $394M is a lot of gold and silver bullion!!!!!
I do not own CFC shares but according to Harvey Organ's blog they hold a 50-50% bullion split between gold & silver. If correct, this would suggest that (if they are fully subscribed) they will be looking to buy ~
140K oz of gold and ~1M oz of silver.
As both bullions are already in short supply -- this could have an impact on the entire PM complex.
CENTRAL FUND OF CANADA LIMITED
https://www.stockhouse.com/tools/?page=%2FFinancialTools%2Fsn%5Fnewsreleases%2Easp%3Fsymbol%3DT%2ECEF%2EA%26newsid%3D8109110
Central Fund of Canada Limited (TSX: CEF.A)(TSX: CEF.U)(NYSE Amex: CEF) ("Central Fund") of Calgary, Alberta announced today that it plans to offer Class A Shares of Central Fund to the public in Canada (except Quebec) and in the United States under its existing U.S.$1,000,000,000 base shelf prospectus dated September 8, 2009 and filed with the securities commissions in each of the provinces and territories of Canada, except Quebec, and under the multijurisdictional disclosure system in the United States pursuant to a proposed underwritten offering by CIBC. Central Fund will only proceed with the offering if it is non-dilutive to the net asset value of the Class A Shares owned by the existing Shareholders of Central Fund.
The remaining amount of approximately U.S.$394,295,000 of the original U.S.$1,000,000,000 provided for in the base shelf prospectus is available for this offering.
Substantially all of the net proceeds of the offering will be used for gold and silver bullion purchases, in keeping with the asset allocation policies established by the Board of Directors of Central Fund. Any additional capital raised by this offering is expected to assist in reducing the annual expense ratio in favour of the Shareholders of Central Fund