Royal Canadian Mint Announces Offering of New Gold Investment Product
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Not for distribution to U.S. news wire services or dissemination in the United States
OTTAWA, Ontario – October 28, 2011 –The Royal Canadian Mint is pleased to announce its initial public offering of Exchange Traded Receipts (ETRs) under the Mint’s new Canadian Gold Reserves program. 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.
“We believe that this new program will build on our reputation and continued success as a world-class custodian of precious metals,” said Ian E. Bennett, President and CEO of the Royal Canadian Mint. “With the introduction of the Canadian Gold Reserves ETR program we hope that investors will see this as a convenient, efficient and secure method for investing in and owning physical gold.”
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. The net proceeds of the offering will be used to purchase gold on behalf of the initial purchasers of ETRs at the London pm fix price on the closing date of the offering (Closing Date). Subject to certain restrictions, ETR holders will be 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 future gold price or market price of the ETRs.
Subject to market conditions, the initial offering of ETRs is targeting an issue size of approximately CAD$250 million. The issue price per ETR will be CAD$20.00 or the USD equivalent and the Per ETR Entitlement to Gold will be determined on the Closing Date and will be reduced daily by an annual service fee of 0.35 per cent.
Subject to the satisfaction of certain conditions, the ETRs will be listed on the Toronto Stock Exchange and commence trading on the Closing Date. ETRs will be listed in both Canadian and U.S. dollars and may be traded in either currency.
Through a competitive process, the Mint has selected a syndicate of investment dealers led by TD Securities Inc. and National Bank Financial Inc., and including 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. to distribute the ETRs on a best efforts agency basis.
Closing is expected to occur in late November 2011. The offering is being made on a prospectus-exempt basis pursuant to the terms of an order of the Ontario Securities Commission dated August 30, 2011.
The ETRs have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States. 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 securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
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 Information Statement. A prospective investor in ETRs should review and carefully consider the risks described in the Information Statement, a copy of which may be obtained in reasonable quantities by contacting TD Securities Inc., Attn: Symcor, NPM (Email: sdcconfirms@td.com, Tel: (289) 360-2009).. 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.
For more information, please contact:
Christine Aquino
Director, Communications
Royal Canadian Mint
aquino@mint.ca
613-993-9999
Back to Listing
Not for distribution to U.S. news wire services or dissemination in the United States
OTTAWA, Ontario – October 28, 2011 –The Royal Canadian Mint is pleased to announce its initial public offering of Exchange Traded Receipts (ETRs) under the Mint’s new Canadian Gold Reserves program. 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.
“We believe that this new program will build on our reputation and continued success as a world-class custodian of precious metals,” said Ian E. Bennett, President and CEO of the Royal Canadian Mint. “With the introduction of the Canadian Gold Reserves ETR program we hope that investors will see this as a convenient, efficient and secure method for investing in and owning physical gold.”
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. The net proceeds of the offering will be used to purchase gold on behalf of the initial purchasers of ETRs at the London pm fix price on the closing date of the offering (Closing Date). Subject to certain restrictions, ETR holders will be 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 future gold price or market price of the ETRs.
Subject to market conditions, the initial offering of ETRs is targeting an issue size of approximately CAD$250 million. The issue price per ETR will be CAD$20.00 or the USD equivalent and the Per ETR Entitlement to Gold will be determined on the Closing Date and will be reduced daily by an annual service fee of 0.35 per cent.
Subject to the satisfaction of certain conditions, the ETRs will be listed on the Toronto Stock Exchange and commence trading on the Closing Date. ETRs will be listed in both Canadian and U.S. dollars and may be traded in either currency.
Through a competitive process, the Mint has selected a syndicate of investment dealers led by TD Securities Inc. and National Bank Financial Inc., and including 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. to distribute the ETRs on a best efforts agency basis.
Closing is expected to occur in late November 2011. The offering is being made on a prospectus-exempt basis pursuant to the terms of an order of the Ontario Securities Commission dated August 30, 2011.
The ETRs have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States. 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 securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
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 Information Statement. A prospective investor in ETRs should review and carefully consider the risks described in the Information Statement, a copy of which may be obtained in reasonable quantities by contacting TD Securities Inc., Attn: Symcor, NPM (Email: sdcconfirms@td.com, Tel: (289) 360-2009).. 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.
For more information, please contact:
Christine Aquino
Director, Communications
Royal Canadian Mint
aquino@mint.ca
613-993-9999
8 comments:
Louis - you don't happen to have a copy of the "information statement" do you? if so, email it to me pls...
Not another closed end fund, prone to premiums and discounts because no unit creation/redemption ability. Stupid structure IMO.
Anyway, as a result I think the it is competing against the Sprott machine. As Sprott holds his metal with RCM, why invest in a Sprott fund when you can just go directly to the source with an RCM fund and cut out the middleman.
Interesting move by RCM to produce a fund that moves into the turf of one of their customers.
Bron - why invest in an exchange traded "non-trust" at all? One can already buy allocated gold....
is the timing just a coincidence --that Central Fund's GTU is also announcing an expansion of their Gold fund?? ( booth on Oct 28 2011 ) ??
http://www.4-traders.com/CENTRAL-GOLD-TRUST-33870/news/CENTRAL-GOLD-TRUST-CGT-Announces-Proposed-Offering-13863359/
RCM must have lotos of empty space to fill ...they don't seem in any hurry to buy and hold their own gold ... hmm ...
Greg
KD,
That's as much as I have right now.
As Bron pointed out it's a closed end. If it gets even close to the promotional press Sprott gets then we will see some premiums. Based on how little press it's gotten so far in might be a dud as far as premiums.
If it gets press it might be short term trade I might be interested in the same way I would be interested in a good IPO. It just depends on how well they push it.
/Tin foil hat mode on/
Greg, it kind of reminds me the push the Chinese are giving to their citizens to buy physical. Except Western countries are wrapping it up in a neat little bow in a nice central taxable location which could possibly be seized in the national interest.
/Tin foil hat mode off/
Louis, re your tin foil hat, I think you are attributing far too much foresight/planning to central bankers. Knowing how little interest our federal or state politicians have in us, I doubt RCM is doing this on instruction, although as a federal institution maybe they are part of a different political environment.
Bron, Yeah I know there hasn't been a spark of intelligence been seen in a Central bank for decades. Govt. on the other hand have a habit of acquiring all sorts of stuff in the national interest but equally dim. It's easy to say they are idiots. I mean they must be with all the stupid things they do right? It's simply I don't trust them to ever get it right or do the right thing for the greater good.
I don't need to go back to the thirties for a gold seizure. Libya is the most recent example. Oil, Gold and a competing currency all smashed and grabbed within weeks.
The Gold bug self reliance and preparation mindset tells me I don't want to put my retirement fund into any one vehicle in any one country. It might seem far fetched until it happens and then it's "Damn, I should have seen that one coming".
By not trusting anything organized by Govt or banks I don't have to worry about it. I don't think there is any opportunity lost with that mindset either. For me it's a very conservative approach to investing.
Louis - I have the info statement - I'll email it to you. it's a joke - the metal is UNALLOCATED!
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