Sprott Comments on Central Fund of Canada Meeting Requisition Appeal
TORONTO, Nov. 9, 2015 (GLOBE NEWSWIRE) -- Sprott Asset Management LP ("Sprott") today noted that the Alberta Court of Appeal has dismissed the appeal regarding the meeting requisition submitted by Sprott and other significant holders of Class A shares to Central Fund of Canada Limited's ("CEF") (NYSE MKT:CEF) (TSX:CEF.A) (TSX:CEF.U) Board of Directors.
John Wilson, CEO of Sprott Asset Management LP, stated: "We appreciate the Court's time and attention to the meeting requisition. It is unfortunate for Class A shareholders that Central Fund's conflicted directors and the Spicer's are able to hide behind technicalities that allow for their continued disenfranchisement of the true owners of the company. CEF owners have suffered from severe underperformance, value destruction and a system of conflicts that bind CEF's directors to the Spicer-controlled administrator. As a significant holder of Class A shares, Sprott will continue to explore options for Class A shareholders to express their views and enact the change needed to resolve the governance and performance issues at CEF."
On November 6, 2015, CEF traded at a [10.5]% discount to its net asset value and over the past year it has traded at an average discount of greater than 8.6%.
ABOUT SPROTT ASSET MANAGEMENT LP
Sprott Asset Management LP is the investment manager to Sprott Physical Gold Trust and Sprott Physical Silver Trust (the "Sprott Physical Trusts"). Important information about each of the Sprott Physical Trusts, including its investment objectives and strategies, applicable management fees, and expenses, is contained in the current annual information form for each of the Sprott Physical Trusts, which can be found on its website, in the U.S. on www.sec.gov and in Canada on www.sedar.com. Commissions, management fees, or other charges and expenses may be associated with investing in the Sprott Physical Trusts. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated. To learn more about Sprott Physical Gold Trust or Sprott Physical Silver Trust, please visit sprottphysicalbullion.com.
Cautionary Statement Regarding Forward-Looking Information
This news release contains "forward-looking statements" and "forward-looking information" (collectively, "forward-looking information") within the meaning of applicable Canadian and United States securities legislation. Forward-looking information includes information that relates to, among other things, Sprott continuing to explore options for Class A shareholders of CEF to express their view and enact change. Forward-looking information is not, and cannot be, a guarantee of future results or events. Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by us at the date the forward-looking information is provided, are inherently subject to significant risks, uncertainties, contingencies and other factors that may cause actual results and events to be materially different from those expressed or implied by the forward-looking information. The material factors or assumptions that Sprott identified and applied in drawing conclusions or making forecasts or projections set out in the forward-looking information include, but are not limited to, the process and timing for an appeal in the Alberta court. Should one or more risk, uncertainty, contingency or other factor materialize or should any factor or assumption prove incorrect, actual results could vary materially from those expressed or implied in the forward-looking information. Accordingly, the reader should not place undue reliance on forward-looking information. Sprott does not assume any obligation to update or revise any forward-looking information after the date of this news release or to explain any material difference between subsequent actual events and any forward-looking information, except as required by applicable law.
Source: Sprott Asset Management
For more information: Glen Williams Director of Communications Sprott Group Direct: 416-943-4394 or For U.S. Media: Dan Gagnier / Patrick Scanlan Sard Verbinnen & Co 212-687-8080