July 24, 2015
Dear Central GoldTrust Unitholder,
You bought physical gold because you understand its unique value and role
in the global economy — however, you deserve greater value from your investment than you are currently receiving from Central GoldTrust.
Sprott is offering Central GoldTrust (GTU) unitholders an immediate exchange premium and the opportunity to own an investment that will better reflect the value of your physical gold holdings every day.
It is no secret that GTU units are undervalued and persistently trade at a significant discount to the actual price of gold bullion. GTU’s management knows this and the recent changes they announced have been reactive and incomplete. In fact, every action GTU has taken since Sprott initiated its offer has been aimed at distracting you from the immediate and ongoing value proposition we are presenting.
The reality is, Sprott Physical Gold Trust (PHYS) units have consistently reflected the actual price of gold. Your GTU units have not. GTU management’s inability to overcome this gap costs you money every day.
GTU Performance Versus PHYS Performance
Only by accepting Sprott’s tender offer will GTU unitholders be able to get the value they deserve on an immediate basis. If you do not act now, you will remain subject to an indifferent board and manager that have been unable or unwilling to give you the value you deserve.
Whether we are in a bull or bear market, your investment should reflect the price of gold. PHYS has that track record. GTU does not — its model simply does not work.
ONLY SPROTT’S OFFER WILL PROVIDE YOU WITH
IMMEDIATE AND CERTAIN VALUE
By tendering your GTU units you will become an owner of a best in class physical bullion vehicle with enhanced liquidity and transparency. You will also have unmatched security for your gold.
It is important you act now. The Sprott offer is open for acceptance until 5:00pm on August 7, 2015, unless extended or withdrawn.
GTU unitholders who have questions regarding the Sprott offer are encouraged to visit our dedicated website at http://www.sprottadvantage.com or contact Sprott’s unitholder services agent, Kingsdale Shareholder Services at 1-888-518-6805 (toll free in North America) or at 1-416-867-2272 (outside of North America) or by e-mail at contactus@kingsdaleshareholder.com.
Thank you for your support.
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Sincerely, |
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John Wilson |
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CEO, Sprott Asset Management |
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Important Notice
The Sprott offer is subject to conditions. Full details of the Sprott offer are set out in a takeover bid circular and accompanying offer documents (collectively, and as amended by the notices of extension and variation dated June 22, 2015 and July 7, 2015 and as further extended and varied, the “Offer Documents”), which have been filed with the Canadian securities regulatory authorities. In connection with the Sprott offer, PHYS has also filed with the U.S. Securities and Exchange Commission (the “SEC”) a registration statement on Form F-10 (each a “Registration Statement”), which contains a prospectus relating to the Sprott offer (a “Prospectus”)and a tender offer statement on Schedule TO (the “Schedule TO”). This document is not a substitute for the Offer Documents, the Prospectus, the Registration Statement or the Schedule TO. GTU UNITHOLDERS AND OTHER INTERESTED PARTIES ARE URGED TO READ THESE DOCUMENTS, ALL DOCUMENTS INCORPORATED BY REFERENCE, ALL OTHER APPLICABLE DOCUMENTS AND ANY AMENDMENTS OR SUPPLEMENTS TO ANY SUCH DOCUMENTS WHEN THEY BECOME AVAILABLE, BECAUSE EACH WILL CONTAIN IMPORTANT INFORMATION ABOUT SPROTT, GTU, PHYS AND THE SPROTT OFFER. Materials filed with the Canadian securities regulatory authorities are available electronically without charge at www.sedar.com. Materials filed with the SEC are available electronically without charge at the SEC’s website at www.sec.gov.
This document does not constitute an offer to buy or the solicitation of an offer to sell any of the securities of GTU or PHYS. The Sprott offer is being made solely pursuant to the Offer Documents. The securities registered pursuant to a Registration Statement are not offered for sale in any jurisdiction in which such offer or sale is not permitted.
This document 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 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.