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Claymore Gold Bullion Trust announces warrant exercise and gold fully-invested
Claymore Gold Bullion Trust announces warrant exercise and gold fully-invested
About this update from Alphagen Intelligence Corp.
[{"type":"text","content":"\n\n\n\nDec. 2, 2009 (Canada NewsWire Group) -- TORONTO, Dec. 2 /CNW/ -- Claymore Investments, Inc. as manager of Claymore Gold Bullion Trust (the \"Fund\") is pleased to announce that the Fund has raised additional aggregate proceeds of $397,638,010 pursuant to the exercise of an aggregate 39,763,801 warrants (the \"Warrants\") for the purchase of units of the Fund (the \"Fund Units\") prior to the expiry thereof. Warrants not exercised by 4:00 p.m. on November 30, 2009 (Toronto Time) are void and of no value.The proceeds of all warrant exercises are now fully invested in gold bullion. As at December 1, 2009, the Fund held 706,621 ounces of physical gold bullion at a weighted average cost of U.S.$1,058.28 per ounce on a fully-hedged basis.As of close of business on December 1, 2009, the Fund Units were trading at a price of $10.52 per Fund Unit. The current fully-diluted net asset value (\"NAV\") per Fund Unit, as of close of business on December 1, 2009, was $10.88 per Fund Unit. The Fund has an automatic conversion feature whereby it will convert into an exchange-traded fund if, for a period of 10 consecutive trading days after November 28, 2009, the daily weighted average trading price of the Fund Units is greater than a discount of 2% of NAV per Fund Unit for that day.As at December 1, 2009, the Fund has 83,056,301 Fund Units issued and outstanding. The Fund Units are listed on the Toronto Stock Exchange (\"TSX\") under the symbol CGL.UN.About Claymore Gold Bullion TrustThe investment objective of the Fund is to replicate the performance of the price of gold bullion, less the Fund's expenses and fees. The Fund does not anticipate making regular distributions on its Fund Units.The Fund invests in holdings of pure, gold bullion, in 400 troy ounce international bar sizes, and does not speculate with regard to short-term changes in gold prices. This strategy provides investors with the ability to get exposure to gold bullion in a convenient, tradable and secure manner without the associated inconvenience and high transaction, handling, storage, insurance and other costs typical of direct gold bullion investment. The Fund holds a nominal amount of cash for further gold bullion purchases and working capital purposes.Given that gold bullion is priced in US dollars, the Fund hedges substantially all of the Fund's US dollar currency...