Suggesting institutional confidence in the future of the silver price, the underwriters in the recent $200 million offering of new units in the Sprott Physical Silver Trust have taken up $20 million in additional units.
by Lawrence Williams
LONDON (Mineweb) – The recent fully subscribed $200 million offering of new units by the Sprott Physical Silver Trust has received an additional boost by the offer underwriters – Morgan Stanley and RBC Capital Markets – taking advantage of an option that enables them to buy additional units on their own accounts. The two underwriters have between them taken up1.8 million units, in addition to the 18.1 million units on offer at US$11.15 each, bringing the amount raised by the Trust to a little over $220 million.
As previously noted here, Sprott plans to use the proceeds to purchase, and take delivery of physical silver to the value of the amount raised, which at current silver prices would amount to some 8 million plus ounces of physical metal.