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TORONTO, June 06, 2024 (GLOBE NEWSWIRE) — Sprott Asset Management LP (“Sprott Asset Management() is a wholly owned subsidiary of Sprott Inc. ().Sprott) (NYSE/TSX: SII) today announced that it has acquired Sprott Physical Copper Trust (the “trust) the Trust has 10,000,000 transferable units (“unit) for US$10.00 per unit (“Recruitment”) The offering is expected to generate aggregate proceeds of $100 million.
The units will begin trading today in U.S. dollars and Canadian dollars on the Toronto Stock Exchange under the symbols “COP.U” and “COP.UN,” respectively.
The Trust is a closed-end trust established to invest and hold substantially all of its assets in physical copper. The net proceeds of this offering will be used generally to purchase copper. The Trust’s investment objective is to provide a safe and convenient exchange-traded investment alternative to investors interested in holding copper without the inconveniences inherent in investing directly in copper. The Trust does not intend to make periodic cash distributions to holders of units.
“We are pleased to introduce the Sprott Physical Copper Trust, the world’s first physical copper investment fund,” said John Ciampaglia, CEO of Sprott Asset Management. “The Trust answers a market need by providing investors with an alternative to holding copper futures. Investor interest in copper is growing globally due to its critical role as a key component in electrification, clean energy technologies, electric vehicles and artificial intelligence. With the introduction of this Trust, Sprott now offers four distinct copper investment strategies.”
Canaccord Genuity Corp., BMO Capital Markets and Cantor Fitzgerald Canada Corporation acted as joint book-running managers for the offering. RBC Capital Markets and TD Securities Inc. also acted as underwriters for the offering.
WMC Energy BV is acting as technical advisor to Sprott Asset Management and will arrange all copper sourcing and handling.
The Trust has granted the underwriters an over-allotment option, exercisable 30 days from the closing date of the Offering, to cover over-allotments, if any, which, if exercised in full, would result in gross proceeds from the Offering of US$115 million.
About Sprott
Sprott Asset Management is a wholly owned subsidiary of Sprott and is the Trust’s investment manager. Sprott is a global leader in precious metals and critical materials investments. Sprott are specialists. Our deep knowledge, experience and relationships set us apart from generalists. Our investment strategies include exchange-traded products, managed equity and private strategies. Sprott has offices in Toronto, New York, Connecticut and California, and Sprott common shares are listed on the New York Stock Exchange and the Toronto Stock Exchange under the symbol “SII.” For more information, visit www.sprott.com.
contact:
Glenn Williams
Managing Partner
Investor and Institutional Client Relations
Direct: 416-943-4394
email address
This offering is being made only by means of a prospectus. The prospectus contains important detailed information about the securities being offered and has been filed with the securities commissions or similar authorities of each province and territory of Canada. Copies of the prospectus may be obtained from any of the underwriters named above. Investors should read the prospectus before making any purchase.
Investment decision.
The Units have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws of the United States and may not be offered or sold, directly or indirectly, in the United States (as defined in Rule S of the U.S. Securities Act) absent registration under the U.S. Securities Act and the applicable securities laws of any state of the United States or reliance on an exemption from such registration requirements. This news release does not constitute an offer to sell, or the solicitation of an offer to buy, any securities of the Trust referred to herein in the United States.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
This material may contain certain statements that constitute “forward-looking information.” Forward-looking information includes, among other things, predictions, estimates and information about possible or future outcomes relating to the Trust, market or regulatory developments. The views expressed herein are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that may cause actual outcomes and results to differ materially from the views expressed herein. The views expressed herein are subject to change at any time based on economic, market or other conditions, and the Trust assumes no obligation to update the views expressed herein.
