/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE
UNITED STATES/
OTTAWA, Sept. 19, 2013 /CNW/ - (TSX: MNT/TSX: MNT.U) The Royal Canadian
Mint is pleased to announce that it has completed a private placement
of 6,000,000 exchange-traded receipts ("ETRs") under the Mint's
Canadian Gold Reserves program at a price of C$15.17 per ETR (the
"Offering") for gross proceeds of C$91,029,559. The newly-issued ETRs
have been listed on the Toronto Stock Exchange and are fully fungible
with all other outstanding ETRs. The Offering was made on a
prospectus-exempt basis in reliance on orders from the Ontario
Securities Commission dated August 30, 2011 and October 12, 2012.
Each ETR provides its holder with direct legal and beneficial ownership
in physical gold bullion held in the custody of the Mint at its
facilities in Ottawa, Ontario. After deducting the expenses of the
Offering, net proceeds of C$90,847,868 million were applied today to
purchase an aggregate of 64,990.568 ounces of gold bullion on behalf of
the purchaser of the ETRs, based on the London P.M. fix price of gold
of US$1365.50 per ounce and the Bank of Canada noon rate of
US$1.00/C$1.0237. The newly-issued ETRs have a per ETR entitlement to
gold that is the same as all other outstanding ETRs, which as of
today's date is 0.0108318 of one fine troy ounce.
Further, the Mint announces that it intends to offer an additional
optional service under the physical redemption program to facilitate
the liquidation of physical gold bullion. ETR holders opting to use
this service will be required to pay a facilitation fee of
approximately 13 bps of the physical gold liquidated (subject to a
minimum fee), which would be in addition to other fees incurred
pursuant to a physical redemption. This additional optional service is
expected to be offered by the Mint commencing March 17, 2014 and will
be available to any ETR holders opting for a physical redemption of
their gold ETRs.
An investment in 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 program is contained in the
information statement dated September 17, 2013 (the "Information
Statement"), which is available at www.reserves.mint.ca and www.sedar.com. ETR holders have no recourse to the Mint or the Government of Canada
for any loss on their investment.
The ETRs 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 ETRs in any jurisdiction in which such an
offer, solicitation or sale would be unlawful.
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 issued exchange-traded receipts under
its Canadian Gold Reserves (TSX: MNT/MNT.U) and Canadian Silver
Reserves (TSX: MNS/MNS.U) programs, which provide holders with direct
legal and beneficial ownership in physical 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 Offering and the
Mint's intention to offer an additional optional service under its
physical redemption program. 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 ETRs, the Canadian Gold
Reserves program or the Mint, reference should be made to the
Information Statement, which may be accessed 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 Royal Canadian Mint
