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PRESS RELEASE
For Immediate Release
Central Gold-Trust, North America's Gold Bullion Trust,
Announces Completion of Initial Purchases of Gold
Ancaster, Ontario, Canada
Wednesday, July 16, 2003
Central Gold-Trust is pleased to
announce the completion of initial purchases of 76,000 ounce of gold with the
proceeds from its recent offering of voting Units that closed on July 8, 2003.
Central Gold-Trust now holds 71,600 troy ounces of physical gold bullion and
4,400 troy ounces in certificate form
representing 90.6 % and 5.6 % of total assets respectively. With 96.2 % of
assets invested in gold, Canadian and United States
cash holdings represent 3.8 % of assets.
Central Gold-Trust is a self-governing limited purpose trust established under
the laws of Ontario on April 28, 2003. Its
purpose is to invest substantially all of its assets in unencumbered physical
gold bullion, in 400 troy ounce international bar form.
Central Gold-Trust provides investors an exchange-tradable, convenient, low-cost
and secure investment alternative for gold
bullion that is physically stored in allocated, segregated and insured
safekeeping in a Canadian chartered bank treasury vault.
Units of Central Gold-Trust are eligible as Canadian property for RRSPs, DPSPs,
RRIFs and RESPs. Central Gold-Trust
anticipates that the Units will be considered as capital property for most
investors and thereby qualify for capital gains tax treatment.
Central Gold-Trust granted its Agents, co-led by CIBC World Markets Inc. and RBC
Capital Markets, an option, exercisable in
whole or in part until July 22, 2003, to purchase an additional 300,000
Units of the offering at the offering price of C$20.00 per Unit. If the
over-allotment option is exercised in full,
additional gross proceeds of C$6,000,000 will be realized. Net proceeds
from the exercise of any part of the over-allotment option will be invested in
gold in accordance with Central Gold-Trust's
Declaration of Trust and stated investment policy.
The Units of Central Gold-Trust are listed on the Toronto Stock Exchange with
symbol GTU.UN and may now be purchased on the
TSX by world-wide investors.
Information regarding Central
Gold-Trust is available at www.gold-trust.com.
For further information, please
contact J.C. Stefan Spicer
at 905-304-4653(GOLD) or write to
info@gold-trust.com.
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