ASA Gold Files Additional Proxy Materials, Features Axel Merk Interview

TL;DR

**ASA Gold & Precious Metals just dropped more proxy docs, no fee, with an Axel Merk interview snippet.**

AI Summary

ASA Gold & Precious Metals Ltd filed a DEFA14A on February 22, 2024, indicating additional solicitation materials for a proxy statement. The filing, with accession number 0001999371-24-002649, is a definitive additional materials filing, not requiring a fee. It includes an excerpt of an interview with Axel Merk Hortz, suggesting active involvement in some capacity.

Why It Matters

This filing provides shareholders with additional information related to an upcoming proxy vote, potentially influencing their decisions on company governance or proposals.

Risk Assessment

Risk Level: low — This is a routine filing for additional proxy materials, not indicating any immediate financial or operational risks.

Key Numbers

• 20240222 — Filing Date (Date of DEFA14A submission)
• 811-21650 — SEC File Number (Company's SEC registration number)

Key Players & Entities

• ASA Gold & Precious Metals Ltd (company) — Filer
• Axel Merk Hortz (person) — Interviewed in filing
• 0001999371-24-002649 (dollar_amount) — Accession Number
• February 22, 2024 (dollar_amount) — Filing Date

FAQ

Filing Documents

• asa_defa14a-022224.htm (DEFA14A) — 17KB
• 0001999371-24-002649.txt ( ) — 19KB

From the Filing

SOLICITATION MATERIALS UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 SCHEDULE 14A PROXY STATEMENT PURSUANT TO SECTION 14(a) OF THE SECURITIES EXCHANGE ACT OF 1934 Filed by the Registrant Filed by a Party other than the Registrant Check the appropriate box: Preliminary Proxy Statement Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) Definitive Proxy Statement Definitive Additional Materials Soliciting Material Pursuant to §240.14a-12 ASA Gold and Precious Metals Limited (Name of Person(s) Filing Proxy Statement, if other than the Registrant) Payment of Filing Fee (Check the appropriate box): No fee required. Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a–6(i)(1) and 0–11. Fee paid previously with preliminary materials. Excerpt of interview of with Axel Merk Hortz: So, you are also actively involved in helping them raise their needed capital and not just a passive stock investor? Merk: Yes. We are not a broker, but with the closed-end fund that we manage, we are able to provide capital directly to the industry and what is unique about that is we are an active participant in that space. That gives us access to some of the more attractive opportunities in the smaller gold mining arena. Now, obviously as I mentioned, it is a high-risk place. Not all of these opportunities may work out, but in return for participating in these deals, quite often warrants are issued as well and we believe warrants are a win-win for both the company and the investor. Basically, if the company reaches certain targets, most notably on the share price, it provides the investor an opportunity to participate at the price of the warrant and then at the same time it provides additional funding down the road to the companies. So, the companies love it and we love it as it provides economic leverage when one participates in these deals and it is one of the things that we are able to do in a closed-end fund. Hortz: Why did you originally choose a closed-end fund vehicle for your ASA Gold and Precious Metals fund? Does the closed-end fund structure provide any other benefits than you just mentioned for your investment strategy and for investors? Merk: This fund was founded in 1958. At the time, gold investing was all but impossible in the US and so the fund was actually incorporated in South Africa making us one of the oldest of closed-end funds. It was reincorporated in Bermuda in 2004 and we received permission to function as a closed-end fund in the US and be accessible on a major stock exchange. So, it is a bit of a unique vehicle. The key to the closed-end structure is that it does not have daily inflows and outflows. When you have daily redemptions, your investment strategy has to be very different because you have to be able to liquidate your position on short notice. Whereas in a closed-end fund structure, you are able to provide more long-term capital and it buys you the time to ride the ups and downs in the market and, as an investor, you have an opportunity to decide when you want to participate. It also uniquely provides access to invest in illiquid and volatile assets, like small mining companies, which would be hard to manage for long term returns in traditional liquid vehicles. It is a very different dynamic and unique way of investing over traditional liquid, on-demand markets. In a positive gold market, it can be a very lucrative one, but because we are investing in the junior mining space, it is also a very volatile way of investing. However, given our longstanding history and performance, we are confident in our investment structure. Hortz: Can you also discuss any other unique aspects or potential issues about investing in closed-end funds? Merk: Closed-end funds do not trade at net asset value (NAV) most of the time, like mutual funds and ETFs and most investors buy at a discount, and then down the road again, sell at a discount. It typically does not make much of a difference to long-term investors. Discounts to NAV also attract certain investors that like to trade the discount; buying when the discount is large and then selling when the discount is small. In the case of our ASA Gold and Precious Metals Limited and other closed-end funds, it unfortunately also attracts activist investors at times who do not fully understand this investment structure. We currently have an activist investor that is trying to affect change in a way that we do not think is constructive or beneficial to our shareholders. Historically, what an activist investor would want to do is to force the issue of closing the discount. And with a fund like ours, that is much easier said than done because unlike some closed-end funds, we do not think you can convert our investment strategy to an open-end mutual fund, for example, because of its Bermuda status and, more importantly, because 70

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