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FOR IMMEDIATE RELEASE
Wednesday,
April 30, 2003
PRESS RELEASE:
For Release
on Wednesday, April 30, 2003
For
Distribution on TSE Disclosure Circuit
Central Gold Managers
Inc. and Sprott Asset Management Inc.
Launch A Unique Gold
Bullion Unit Trust
Central
Gold-Trust (“Gold-Trust”), a self governing unit trust, announced today that
it has filed a preliminary prospectus with securities regulatory authorities in
all Canadian provinces, launching North America’s first gold bullion unit
trust offering.
Gold-Trust
will invest substantially all of the net proceeds of an issue of units in 400
troy ounce international bars of physical gold bullion, which will be stored on
an unencumbered, allocated and segregated basis in the treasury vaults of a
Canadian Chartered Bank. An
application has been made to list the units on the Toronto Stock Exchange.
Gold-Trust
will be administered by a very experienced group of gold bullion investment
managers in North America including Eric Sprott, John Embry, Stefan Spicer and
Philip Spicer, who is the founder and Chairman of Central Fund of Canada Limited
(est.1961).
The Trustees
of Gold-Trust believe that the units of Central Gold Trust offer investors many
advantages including the following:
* A less
expensive and more convenient alternative for individuals than purchasing,
handling, storing and insuring physical gold bullion directly;
* Direct
participation in gold bullion market prices in a safe, efficient and secure
manner;
*
The units
will qualify for inclusion in regulated accounts such as RRSPs and RRIFs, (which
would not be the case were an individual to hold physical gold bullion
directly), and
* Lowest fee
structure of any publicly listed bullion investment vehicle in North America.
Eric Sprott
who is both a Trustee and an advisor to Gold-Trust stated: “Gold bullion has
outperformed the major North American indices in each of the last three years.
We believe this outperformance will continue given the poor outlook for
the financial markets. As a result,
Central Gold Managers Inc. has structured Central Gold-Trust as a very low cost
unit trust investment that will enable investors to diversify the risk profile
of their portfolios while providing direct participation in gold bullion in the
safest and most cost-effective way possible”.
The Offering
will be marketed by a syndicate of investment dealers co-led by CIBC World
Markets Inc. and RBC Capital Markets. Marketing
of the offering is expected to begin in May 2003.
The
securities offered have not been registered under the U.S. Securities Act of
1933, as amended, and may not be offered or sold in the United States absent
registration or applicable exemption from the registration requirements.
Accordingly, the securities will only be offered or sold in the United
States to certain accredited investors under the U.S. Securities Act of 1933.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the securities in
any State in which such offer, solicitation or sale would be unlawful.
NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR
DISTRIBUTION TO U.S. NEWSWIRE SERVICES
For further
information, please contact:
J.C. Stefan
Spicer, President at: spicer@gold-trust.com
Tel:
905-304-GOLD (4653)
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