Sprott Physical Gold Trust Announces
Completion of Its Follow-on Offering of Trust Units
Feb 3, 2012
TORONTO, Feb. 3, 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 it has completed its follow-on offering of 20,000,000
transferable, redeemable units of the Trust (the "Units") at US$15.19
per Unit for gross proceeds of US$303,800,000 (the
The Trust will use the net proceeds of the 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
the 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, or upon determination of, pricing of the Offering, as required
under the trust agreement governing the Trust.
At today's prices this offering will pull about 176,000 ounces of gold off
the public market.
In the reverse of what we saw with silver, the big follow on offering for the
Sprott Physical Gold Trust priced out at a premium
to its NAV and its market price. I think that is not possible with silver
because of the huge premium that the Silver trust often carries. The Gold
Trust premium is normally in the 3-4% range.
Sprott placed the entire gold offering fairly
quickly, having announced it last week.