Precious Metals Bullion Trust

Precious Metals Bullion Trust

August 04, 2009 15:22 ET

Precious Metals Bullion Trust Files Final Prospectus

TORONTO, ONTARIO--(Marketwire - Aug. 4, 2009) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Brompton Funds Management Limited (the "Manager") is pleased to announce that Precious Metals Bullion Trust (the "Fund") has filed a final prospectus for a public offering of Combined Units, with a maximum offering size of $120 million. Each Combined Unit is offered at a price of $12.00, and will separate into one Unit and one Warrant immediately following the closing of the offering. Each Warrant entitles the holder to purchase one Unit at a subscription price of $12.00 on or before 5:00 p.m. (Toronto time) on January 31, 2010.

The Toronto Stock Exchange has conditionally approved the listing of the Units and the Warrants, subject to the Fund fulfilling all of the customary requirements. Trading of Units under the symbol PBU.UN and Warrants under the symbol PBU.WT is expected to commence on August 14, 2009, the date of closing.

The investment objective of the Fund is to provide Unitholders with a secure, low cost and convenient method of investing in gold, silver and platinum (together, "Precious Metals") bullion on a Canadian dollar-hedged basis. The Units are redeemable quarterly for a redemption price equal to 100% of the Net Asset Value per Unit less costs, beginning in April 2010.

The net proceeds of the offering will be used to purchase approximately equal dollar amounts of physical gold, silver and platinum bullion as soon as practicable following closing in accordance with the investment objective and restrictions of the Fund. All of the Fund's physical bullion will be stored on an allocated, segregated basis.

Precious Metals have historically been regarded as a store of value, a hedge against inflation and a safe harbour in times of financial and geopolitical distress. Precious Metals have low or negative correlations with bonds and equities, providing portfolio diversification benefits. By purchasing Units, Unitholders will enjoy many of the benefits of a direct investment in Precious Metals such as avoiding counterparty or company specific risks typically associated with derivative-based exposure to commodities and equity securities.

The syndicate of agents for the offering is being co-led by BMO Capital Markets, RBC Captial Markets, and Scotia Capital Inc., and includes Canaccord Capital Corporation, HSBC Securities (Canada) Inc., Dundee Securities Corporation, Raymond James Ltd., Research Capital Corporation, Wellington West Capital Markets Inc., Blackmont Capital Inc., Desjardins Securities Inc., Manulife Securities Incorporated, Haywood Securities Inc. and Richardson Partners Financial Limited.

For further information, please contact your financial advisor, call our investor relations line at 416-642-9051, (toll-free at 1-866-642-6001) or visit our website at www.bromptongroup.com.

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 any applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy the Combined Units nor will there be any sale of such securities in any state in which such offer, solicitation or sale would be unlawful.

Commissions, trailing commissions, management fees and expenses all may be associated with investment funds. Please read the prospectus before investing. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this press release and to other matters identified in public filings relating to the Fund, to the future outlook of the Fund and anticipated events or results and may include statements regarding the future financial performance of the Fund. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information.

Contact Information

  • Brompton Funds Management Limited
    David E. Roode
    Senior Vice-President
    416-642-6008