Not for distribution to U.S. newswire services or dissemination in the
United States
OTTAWA, Aug. 15, 2013 /CNW/ - The Royal Canadian Mint is pleased to
announce details of its plan to facilitate the exercise of 2013
Purchase Rights ("Purchase Rights") under the Mint's Canadian Silver
Reserves Program. Each Silver Exchange-Traded Receipt ("ETR") includes
one Purchase Right which, upon exercise and the payment of C$20 (the
"Exercise Price"), entitles the holder to a number of ETRs based on the
price of silver on the Bullion Purchase Date and the expenses incurred
in connection with the Purchase Right, which will not exceed C$0.40 per
Purchase Right. Purchasers will receive newly-issued Silver ETRs
evidencing their ownership of the purchased silver. Purchase Rights
will not separate or trade separately from the ETRs and unexercised
Purchase Rights will expire. That means holders of ETRs may not sell or
transfer their Purchase Rights.
Only Silver ETR holders of record on September 10, 2013 will be entitled
to exercise Purchase Rights. All Purchase Rights not exercised before
5:00 p.m. (EST) on September 19, 2013 will automatically expire.
The Mint intends to retain TD Securities Inc. and National Bank
Financial Inc. to manage a broad soliciting dealer group to facilitate
the exercise of the Purchase Rights. The expenses related to the
exercise of the Purchase Right are estimated to be, and in any event
will not exceed, C$0.40 per C$20 Purchase Right (2% of the Exercise
Price). Expenses reduce the amount of the Exercise Price that is
applied to the purchase of silver bullion on behalf of those exercising
their Purchase Rights. Expenses incurred by the Mint in excess of
C$0.40 per C$20 Purchase Right will be borne by the Mint.
Subject to the satisfaction of certain conditions, the Silver ETRs
issued upon the exercise of Purchase Rights will be listed on the
Toronto Stock Exchange and commence trading once issued. Silver ETRs
are listed in both Canadian (MNS) and U.S. dollars (MNS.U) and may be
traded in either currency.
For additional details regarding the Purchase Right, the Silver ETRs and
the Canadian Silver Reserves Program, please consult the Amended and
Restated Information Statement dated October 29, 2012 (the "Information
Statement") which can be found at www.reserves.mint.ca or www.sedar.com.
The Mint will also be issuing a Purchase Right Notice shortly that will
contain further information to assist Silver ETR holders considering
the exercise of their Purchase Rights.
The Silver ETRs issuable upon the exercise of Purchase Rights 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 Silver ETRs in any jurisdiction in which
such offer, solicitation or sale would be unlawful.
An investment in the Silver ETRs involves a degree of risk. These risks
result primarily from fluctuations in the price of silver. A detailed
description of these risks and other important information about the
Silver ETRs and the Canadian Silver Reserves Program is contained in
the Information Statement. Silver 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. The Mint has also issued exchange-traded receipts
under its Canadian Gold Reserves Program (TSX: MNT/MNT.U), which
provide holders with direct legal and beneficial ownership in physical
gold 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 Purchase Right. 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 Silver ETRs, the Canadian Silver Reserves Program or the
Mint, reference should be made to the Information Statement, which may
be obtained 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.
SOURCE: Government of Canada
