Sprott Asset Management Adds More Gold To PHYS

Tyler Durden's picture

Update: correction to the prior post due to a link up to an old regulatory release. PHYS is indeed buying more gold, however the actual amount is undisclosed as per the release.

Sprott Physical Gold Trust
(the "Trust") (TSX: PHY.U)(NYSE: PHYS), a trust created to invest and
hold substantially all of its assets in physical gold bullion and
managed by Sprott Asset Management LP, announced today that
it has launched a follow-on offering (the "Offering") of transferable,
redeemable units of the Trust ("Units").

The Trust will use the net proceeds of this Offering to acquire physical
gold bullion in accordance with the Trust's objective and subject to
the Trust's investment and operating restrictions described in the
prospectus related to this Offering. Under the trust agreement governing
the Trust, the net proceeds of the Offering per unit must be not less
than 100% of the most recently calculated net asset value per Unit of
the Trust prior to, or upon determination of, pricing of the offering.

The Units are listed on the NYSE Arca and the Toronto Stock Exchange under the symbols "PHYS" and "PHY.U", respectively. The Offering will be made simultaneously in the United States and Canada by Morgan Stanley and RBC Capital Markets.

One look at the premium to NAV shows why the sale makes sense: the difference between the NAV and the price is the highest since the March highs, despite paper gold trading at all time records.