Central Fund of Canada Ltd. of Calgary, today announced that it has filed a preliminary short form prospectus with the securities regulators across Canada an in the United States for a proposed underwritten offering of class A shares.

The firm says the proposed offering will be priced in the context of the market. However, the company does not intend to proceed with an offering if it does not have a net positive and non-dilutive effect on the net asset value of the class A shares held by existing shareholders.

Proceeds of the offering will be used to purchase gold and silver bullion in a ratio of approximately 50 troy ounces of silver for every one fine ounce of gold, in keeping with the investment policies established by the fund.

The proposed offering will be undertaken by a syndicate of underwriters led by CIBC World Markets.