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TORONTO, ONTARIO--(Marketwire
- March 29, 2011) - 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.
Central Fund has filed a base shelf prospectus and registration
statement with the Canadian securities regulatory authorities (except
Quebec) and the United States Securities and Exchange Commission
("SEC") for the offering to which this communication relates.
Before you invest, you should read the base shelf prospectus and
prospectus supplement, when filed, and any other documents Central Fund
has filed with the securities commissions in each of the provinces and
territories of Canada, except Quebec, and the SEC for more complete
information about Central Fund and this offering. You may obtain a copy
of the base shelf prospectus filed in the United States from CIBC World
Markets Corp., 425 Lexington Avenue, 5th Floor, New York, New York,
10017, by fax at 212-667-6303 or by e-mail at useprospectus@us.cibc.com. You may obtain a copy of the base shelf
prospectus filed in Canada from CIBC, fax 416-594-7242 or request a
copy by telephone at 416-594-7270. When filed, the United States and
Canadian prospectus supplements for the offering may be obtained in the
same manner as the base prospectus.
Statements contained in this release that are not historical facts are
forward-looking statements that involve risks and uncertainties.
Central Fund's actual results could differ materially from those
expressed or implied by such forward-looking statements. Factors that
could cause or contribute to such differences include, but are not
limited to, those risks detailed in Central Fund's filings with the
Canadian securities regulatory authorities and the SEC.
Central Fund of Canada Limited (est. 1961) is an exchange tradeable, refined gold and silver bullion holding
company. Class A Shares are qualified for
inclusion in many North American regulated accounts. Central Fund's
bullion holdings are stored unencumbered in allocated and segregated
safekeeping in Canada, in the treasury vaults of the Canadian Imperial
Bank of Commerce. The gold and silver bullion is physically inspected
by Ernst & Young LLP in the presence of Central Fund's Directors
and Officers as well as bank officials. Class A Shares are quoted on
the NYSE Amex LLC symbol CEF and on the TSX, symbols CEF.A (Cdn. $) and CEF.U (U.S. $).
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