Central Fund closes US$48.5m share issue

Central Fund of Canada (CEF.A-T), a precious metals holding company based in Calgary, has sold 11.6 million class A shares to a syndicate of underwriters led by CIBC World Markets. The proceeds total US$48.5 million.

Investors in Canada and the U.S. accounted for most of the sales.

With the cash, Central Fund bought roughly 75,200 oz. gold and 3.8 million oz. silver at a total price of US$45.6 million.

The company intends to use the remaining cash for further bullion purchases and working capital.

The company has issued 35.8 million Class A shares. It holds 237,855 oz. gold and almost 12 million oz. silver, and has US$4.5 million in the bank.