Senior Gold Producers Income Closes IPO

On February 18, 2011, Senior Gold Producers Income Corp. completed an initial public offering of Class A Shares for gross proceeds of $50,000,000. Additional Class A Shares were issued on March 8, 2010, pursuant to the exercise of the over-allotment option, for additional gross proceeds of $5,000,000.

Senior Gold Producers Income Corp.'s investment objectives are to provide shareholders with monthly distributions, the opportunity for capital appreciation, and lower overall volatility of portfolio returns than would be experienced by owning a portfolio of common shares of large-capitalization companies primarily engaged in the production of gold directly. Senior Gold Producers Income Corp. invests in a portfolio consisting of common shares of gold producers that are included in the S&P/TSX 60 Index. The manager of Senior Gold Producers Income Corp. is Brompton Funds Management Limited. The manager has selected Highstreet Asset Management Inc. to be the option advisor. The option advisor intends each month to sell call options on up to, and not more than, 25 per cent of the common shares of each company held in the portfolio.

The offering was co-led by RBC Capital Markets and CIBC and included BMO Capital Markets, National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., HSBC Securities (Canada) Inc., Raymond James Ltd., GMP Securities L.P., Mackie Research Capital Corporation, Macquarie Private Wealth Inc., Canaccord Genuity Corp., Dundee Securities Corporation, Desjardins Securities Inc., Manulife Securities Incorporated and Wellington West Capital Markets Inc.

Senior Gold Producers Income Corp. and Brompton Funds Management Limited were represented by a team from Stikeman Elliott LLP including Joel Binder, Emma Parker and Laura Levine (corporate and securities) and John Lorito and Katy Pitch (tax).

The agents were represented by a team from Blake, Cassels & Graydon LLP including Jeff Glass, David Palumbo and Lindsay Hooper (corporate and securities) and Ron Richler, Edward Miller and Josh Jones (tax).


Jeff Glass Emma Parker Katy Pitch Ronald M. Richler Josh Jones Edward Miller John G. Lorito Laura Levine Joel E. Binder David Palumbo