Who is Sprott?

  • Sprott Asset Management LP is a leading independent asset management company headquartered in Toronto, Canada.
  • As globally recognized leaders in precious metals investing, Sprott offers products with premium physical redemption features, the security of the Royal Canadian Mint and ongoing marketing support to ensure the value of an investment.

Why should I support Sprott’s proposed arrangement?

  • This is a unique opportunity to exit an underperforming and conflicted vehicle in favor of a best in class investment product.
  • The proposed arrangement could unlock US$304 million in shareholder value based on CFCL’s persistent discount to NAV.
  • CFCL shareholders will benefit from ownership of a product with best-in-class physical redemption features, high-visibility in the marketplace, and a team dedicated to ensuring that their investment accurately reflects the value of the gold and silver that underlies it.

How would the arrangement work?

  • Once the proposed arrangement is approved by the applicable CFCL shareholders, all or substantially all of the assets and liabilities of CFCL (other than its administration agreement with the Spicer family-controlled Administrator, The Central Group Alberta Ltd.) would be transferred to the New Sprott Trust.
  • CFCL’s Class A shareholders would receive units of the New Sprott Trust in exchange for their Class A shares on a one-for-one basis.

What can I do to support the proposed arrangement?

  • Sprott has filed an application seeking an interim order of the Alberta court providing for the calling and holding of a special meeting of CFCL shareholders to consider and vote upon the proposed statutory plan of arrangement.
  • Upon receipt of an interim order from the Alberta court, Sprott intends to call and hold a special meeting of CFCL shareholders to consider and vote upon the proposed arrangement.

Who can I contact for more information?

CFCL shareholders who have questions regarding Sprott’s application to the Alberta court are encouraged to contact Glen Williams, Head of Investor Relations at Sprott Group, at 1-416-943-4394 or by e-mail at gwilliams@sprott.com.