Central Fund of Canada Ltd., based in Calgary, Alberta announced today that it has entered into an agreement with a syndicate of underwriters led by CIBC World Markets Inc.

The underwriters have agreed to buy and sell to the public, in Canada and in the United States under the multijurisdictional disclosure system, 11,584,660 Class A shares of Central Fund.

The purchase price of US$4.19 (Cdn.$6.43) per Class A Share is expected to result in proceeds of approximately US$48.5 million (Cdn.$74.5 million).

Substantially all the net proceeds of the offering have been committed to purchase gold and silver bullion in a ratio of approximately 50 ounces of silver for every one fine ounce of gold, in keeping with the firm’s investment policies.

Closing is expected on or about June 13.