Press release from CNW Group
CMP Gold Trust Announces Issuer Bid
Tuesday, February 15, 2011
TORONTO, Feb. 15 /CNW/ - CMP Gold Trust (the "Trust")(TSX:CMP.UN), managed by Dundee Securities Ltd. ("Dundee Securities") and sub-advised by Ned Goodman Investment Counsel Ltd. ("NGIC"), will undertake a normal course issuer bid. The bid of up to 709,757 trust units of the Trust (the "Trust Units") represents approximately 10% of the public float and will be excercised through the facilities of the Toronto Stock Exchange ("TSX"). As of February 4, 2011, the public float of the Trust was 7,097,573 trust units and the issued and outstanding number of trust units of the Trust totaled 8,622,647.
The Trust Units may be purchased for cancellation commencing on February 17, 2011 through to February 16, 2012 through the facilities of the TSX and may be purchased when the net asset value ("NAV") per Trust Unit exceeds its trading price. Pursuant to TSX policies, the Trust will not purchase during any 30 day period more than 172,452 Trust Units representing 2% of the 8,622,647 Trust Units outstanding as at February 4, 2011. A Notice of Intention to Make a Normal Course Issuer Bid has been accepted by the TSX, effective as of February 15, 2011.
The purpose of the normal course issuer bid is to provide value to the Trust through purchases made at a discount to the NAV per Trust Unit. As of February 4, 2011, the NAV of the Trust was $19.01 per trust unit and the closing trading price was $12.19 per trust unit (representing a discount of 35.88% when measured against the NAV per trust unit).
Dundee Securities is acting as broker on behalf of the Trust in connection with the normal course issuer bid.
About Dundee Securities
Dundee Securities, manager of CMP Gold Trust and the flow-through limited partnerships of CMP™ and Canada Dominion, is an investment dealer and wholly owned subsidiary of Dundee Capital Markets Inc. ("Dundee Capital Markets") (TSX:DCM). Dundee Capital Markets is a full service investment bank that provides financing and advisory services for public and private companies as well as research and institutional trading services to clients in Canada, the United States and Europe. Dundee Corporation (TSX:DC.A) holds approximately 48% of Dundee Capital Markets.
NGIC is a wholly owned subsidiary of Dundee Corporation and is led by Ned Goodman, CFA, utilizing a team of resource specialists at Dundee Resources Limited, another wholly owned subsidiary of Dundee Corporation. NGIC also acts as the sub-advisor to Dundee Securities for the CMP and Canada Dominion family of flow-through limited partnerships and to Goodman & Company, Investment Counsel Ltd. for the Dynamic Focus+ Resource Fund and DMP Resource Class fund.
For further information:
|Customer Relations Centre||Myra Reisler, Media Relations|
|1-800-268-8186 or www.cmpfunds.ca||(416) 365-5370|