Central Fund of Canada Ltd. has completed the sale of 11,040,000 Class A Shares of Central Fund at a price of US$11.90 per share to underwriter CIBC, the Calgary-based company said Thursday.

The share offering raised total gross proceeds of US$131,376,000.

The Class A Shares offered were primarily sold to investors in Canada and in the United States.

“The underwritten price of U.S.$11.90 per Class A Share was non-dilutive and accretive for the existing shareholders of Central Fund,” the company said in release.

Substantially all of the net proceeds of the offering have been invested in gold and silver bullion in international banker bar denominations, with the balance of the net proceeds reserved for working capital purposes.

“The additional capital raised by this underwriting is expected to assist in reducing the annual expense ratio,” Central Fund said.

Central Fund of Canada Ltd. is an exchange-tradeable, refined gold and silver bullion holding company. The fund’s Class A Shares are qualified for inclusion in many North American regulated accounts.

IE