Sprott Physical Gold Trust Closes Offering

On April 12, 2011, Sprott Physical Gold Trust completed a cross-border follow-on public offering of 27,168,500 trust units at US$12.54 per unit for gross proceeds of US$340,692,990, which included the exercise in full of the over-allotment option under the offering. 17,997,500 units were offered on an underwritten basis and the remaining 9,171,000 units were offered on a “best efforts” agency basis and purchased by several lead investors.

The trust was created to invest and hold substantially all its assets in physical gold bullion and provide a secure, convenient and exchange-traded way for investors interested in holding physical gold bullion without the inconvenience that is typical of a direct investment in physical gold bullion.

The trust completed its initial public offering on March 3, 2010 and two cross-border follow-on offerings on June 1, 2010 and September 22, 2010 and is managed by Sprott Asset Management LP. (“Sprott”), a wholly owned subsidiary of Sprott Inc. The units are listed on the NYSE Arca and the Toronto Stock Exchange.

The offering was made simultaneously in the United States and Canada by Morgan Stanley and RBC Capital Markets in the United States and RBC Capital Markets and Morgan Stanley in Canada.
Canadian counsel to the trust and Sprott was Heenan Blakie LLP with a team that included Sonia Yung and Ora Wexler (securities) and Peter Clark (tax). United States counsel to the trust and Sprott was Seward & Kissel LLP with a team that included Anthony Tu-Sekine, Eric Wu (securities) and Jim Cofer (tax).

Canadian counsel to the underwriters and agents was Davies Ward Phillips & Vineberg LLP with a team that comprised Shawn McReynolds, Robert Murphy, Chris Figel and Megan McLeese (securities) and Ron Wilson and Neal Armstrong (tax). United States counsel to the underwriters and agents was Shearman & Sterling LLP with a team that comprised Christopher Cummings, Stephen Centa, Hugo Sin and Daniel Weber (securities) and Laurence Crouch and Eileen O'Pray (tax).