This offering will raise between $341,000,000 and $392,000,000 for additional purchases of gold bullion, taking it off the world market. The final number depends on the actions of the underwriters with regard to their own allotment of 3,450,000 units at roughly 14.84.
The total raised would represent roughly 240,000 ounces of gold at $1740 per ounce.
Sprott Physical Gold Trust Prices Follow-on Offering of Trust Units In An Aggregate Amount of US$341,320,000
Sep 7, 2012
TORONTO, Sept. 7, 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, announced today that it has priced its follow-on offering of 23,000,000 transferable, redeemable units of the Trust ("Units") at a price of US$14.84 per unit (the "Offering").
As part of the Offering, the Trust has granted the underwriters an over-allotment option to purchase up to 3,450,000 additional Units. The gross proceeds from the Offering will be US$341,320,000 (US$392,518,000 if the underwriters exercise in full the over-allotment option).
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. Under the trust agreement governing the Trust, the net proceeds of the Offering per unit must be not less 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...
Year-To-Date Comparison of the performance of gold and PHYS.
Year-To-Date Comparison of the performance of GTU and PHYS