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.


John S. Elder Douglas B. Nathanson Tom Koutoulakis Nicole Brown Jonathon A. Van Horn Gabe Gartner Christopher J. Steeves Bradley G. Kruger Christopher B. Norton Gil I. Cornblum Adam M. Givertz Norman F. Findlay


Dentons Canada LLP Dorsey & Whitney LLP Cassels Brock & Blackwell LLP Shearman & Sterling LLP