Central Fund Completes $150M MJDS Offering

On April 8, 2004, Central Fund of Canada Ltd. completed a public offering of 19,500,000 non-voting, fully-participating class A shares to investors in Canada and in the US, under the Multijurisdictional Disclosure System, for total gross proceeds of approximately $150 million. Central Fund used most of the net proceeds to purchase gold and silver bullion.

The issue was completed at a price that was both non-dilutive and accretive to the net asset value of class A shareholders prior to the issue. In addition, due to Central Fund’s larger asset base as a result of the issue, the operating costs (expense ratio) will be reduced on a per share basis for all class A shareholders.

Central Fund was represented by Fraser Milner Casgrain, with a team that included John Elder, Q.C. and Christopher Steeves (tax), Bradley Kruger and Nicole Brown; and by Gil Cornblum, Jonathan Van Horn and Gabe Gartner (tax) of Dorsey & Whitney, who provided US securities law advice.

The underwriter, CIBC World Markets Inc., was represented by Cassels Brock & Blackwell, with a team that included Norman Findlay, Tom Koutoulakis and Chris Norton (tax); and by Adam Givertz, Douglas Nathanson and Brice Voran of Shearman & Sterling, who provided US securities law advice.