Claymore Gold Bullion Trust Closes $400M IPO

On May 28, 2009, Claymore Investments Inc., as manager of Claymore Gold Bullion Trust (the Fund), completed an initial public offering of 40,000,000 units of the Fund at a price of $10 per unit.

On June 15, 2009, the Fund issued an additional 3,292,500 units pursuant to the exercise of the over-allotment option granted to the Fund's agents in connection with the initial public offering. The Fund raised total gross proceeds of $432,925,000 pursuant to the offering.

Each unit is comprised of one transferable and redeemable trust unit (a fund unit) and one warrant. Each warrant is exercisable to acquire one additional fund unit for $10 at any time before 4:00 p.m. (EST) on November 28, 2009. The fund units and warrants commenced trading on May 28, 2009 on the Toronto Stock Exchange under the symbols CGL.UN. and CGL.WT, respectively.

The Fund's investment objective is to replicate the performance of the price of gold bullion, less the Fund's expenses and fees. This objective will be accomplished by investing the net proceeds of the offering in holdings of physical gold bullion.

This strategy will give investors the ability to invest in gold bullion in a secure, low-cost and convenient manner without the associated inconvenience and high costs typical of direct gold bullion investment. Given that gold bullion is priced in US dollars, the Fund will hedge substantially all of its US dollar currency value back to the Canadian dollar, providing exposure to gold while reducing the currency risk for Canadian investors.

Claymore will earn a management fee of 0.50 per cent of the net asset value of the Fund monthly which includes all fees, operating expenses and custodian fees of the Fund, other than certain compliance fees, taxes and extraordinary expenses.

The Fund will automatically convert into an exchange-traded fund if the Fund Units trade at a discount to net asset value after the date that is six months following the closing of the offering.

The offering was made on a best efforts basis in each of the provinces and territories of Canada through a syndicate of investment dealers led by GMP Securities L.P. and TD Securities Inc., and including Genuity Capital Markets, Canaccord Capital Corporation., Dundee Securities Corporation, Richardson Partners Financial Limited, Scotia Capital Inc., Blackmont Capital Inc., Desjardins Securities Inc., Haywood Securities Inc., Burgeonvest Securities Limited, FirstEnergy Capital Corp., HSBC Securities (Canada) Inc., Research Capital Corporation, Rothenberg Capital Management Inc. and Wellington West Capital Markets Inc.

Wildeboer Dellelce LLP acted for Claymore and the Fund with a team including Perry Dellelce, Peter Simeon, Al Wiens, Geoffrey Cher, Joanne Sanci and Patrick Magee (corporate/securities) and Kevin Fritz, Andrea Shreeram and Nicholas Dobbek (tax).

The syndicate of agents was represented by Blake, Cassels & Graydon LLP with a team that included Anoop Dogra and David Palumbo (corporate/securities) and Chris Van Loan and Edward Miller (tax).


Patrick Magee Peter E. Simeon Nicholas Dobbek Alfred Wiens Perry N. Dellelce Andrea Shreeram Kevin F. Fritz Christopher R.J. Van Loan Anoop Dogra David Palumbo Joanne Sanci Geoffrey Cher Edward Miller