(Source: Canada Newswire)
TORONTO, July 20 /CNW/ - Gold Participation and Income Fund (the "Fund"), a closed-end investment trust designed to provide investors with Canadian-dollar exposure to the long-term performance of gold bullion and gold equity securities while providing a monthly distribution stream and mitigating downside risk, is pleased to announce the exchange ratios for the Fund's exchange option (the "Exchange Option") with respect to its initial public offering.
Under the Exchange Option, prospective purchasers had the opportunity to exchange Shares of SPDR Gold Trust and freely- tradeable listed securities of issuers in the S&P/TSX Global Gold Index or the S&P/TSX 60 Index (collectively, "Exchange Securities") for Combined Units of the Fund (each Combined Unit consisting of one Unit of the Fund and one Warrant for one Unit).
Under the Exchange Option, the number of Combined Units issuable in exchange for Exchange Securities deposited by prospective purchasers was determined by dividing the weighted average trading price of the Exchange Securities on the Toronto Stock Exchange, The New York Stock Exchange or The NASDAQ Stock Market, as the case may be, during the three consecutive trading days ending on July 17, 2009, as adjusted to reflect dividends declared or distributions pending which will not be received by the Fund (such adjusted trading price being the "Exchange Price") by $12.00 (being the issue price of a Combined Unit).
The following table sets out each Exchange Price and exchange ratio, which represents the number of Combined Units to be received by prospective purchasers for each Exchange Security deposited.
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Combined Units
Exchange Security ------------------------- --------
Exchange Price Exchange Ratio
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SPDR Gold Trust:
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Shares................................ $102.9812 8.5818
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S&P/TSX Global Gold Index:
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Agnico-Eagle Mines Ltd................ $60.9946 5.0829
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Alamos Gold Inc....................... $9.6027 0.8002
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Allied Nevada Gold Corp............... $9.2175 0.7681
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AngloGold Ashanti Ltd................. $41.2533 3.4378
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Aurizon Mines Ltd..................... $4.0393 0.3366
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Barrick Gold Corporation.............. $38.1361 3.1780
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Centamin Egypt Limited................ $1.6181 0.1348
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DRDGOLD Limited....................... $9.1393 0.7616
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Eldorado Gold Corporation............. $10.2424 0.8535
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Franco-Nevada Corporation............. $27.1132 2.2594
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Gammon Gold Inc....................... $8.4134 0.7011
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Gold Fields Limited................... $13.1018 1.0918
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Goldcorp Inc.......................... $40.3300 3.3608
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Harmony Gold Mining Company Limited... $10.2932 0.8578
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IAMGOLD Corporation................... $11.2897 0.9408
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Kinross Gold Corporation.............. $21.9795 1.8316
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Lihir Gold Limited.................... $26.1728 2.1811
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New Gold Inc.......................... $3.0638 0.2553
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Newmont Mining Corporation............
