ASA Gold & Precious Metals Files Additional Proxy Materials

TL;DR

ASA Gold & Precious Metals dropped more proxy docs. Keep an eye out.

AI Summary

ASA Gold and Precious Metals Limited filed a Definitive Additional Materials proxy statement on April 19, 2024. This filing is related to soliciting materials for the company. The filing does not appear to contain specific financial figures or proposals at this stage, but rather serves as supplementary material to a prior proxy statement.

Why It Matters

This filing indicates ongoing corporate actions or communications requiring shareholder attention, potentially related to upcoming meetings or decisions affecting the company's governance or operations.

Risk Assessment

Risk Level: low — The filing is a routine proxy statement supplement and does not appear to contain new, high-impact information or proposals.

Key Players & Entities

• ASA Gold and Precious Metals Limited (company) — Registrant
• Cory Fleck (person) — Interviewer in KE Report

FAQ

Key Financial Figures

• $370 million — xel and his team help manage is about a $370 million US fund. You can find it traded on the
• $3 m — window, however small financings, two, $3 million, that’s more or less lights

Filing Documents

• asa-defa14a_041924.htm (DEFA14A) — 43KB
• 0001839882-24-012222.txt ( ) — 44KB

From the Filing

DEFINITIVE PROXY SOLICITING 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. The KE Report Interview Cory Fleck: Hey, everyone. Welcome in to another daily editorial here on the KE Report. We’re chatting with Axel Merk, and we have some important information to talk about when it comes to a precious metals fund that Axel and Merk Investments help manage. We’re also going to tie that into comments on more investor interest that Axel is seeing in precious metals, especially down into the precious metals equities. Axel is the president and CIO of Merk Investments, which specializes in investment strategies for gold, gold equities and stagflation. Now, this ASA fund that Axel and his team help manage is about a $370 million US fund. You can find it traded on the NYSE under that symbol ASA. Axel, you shared with us that there’s a contested takeover coming for this close-ended fund and there is a very important vote coming up next Friday, Friday, April 26th. Give us a little background on what’s happening within this ASA fund please. Axel Merk: Yes. Thanks for having me. It’s great to be with you again. ASA is what is called a closed-end fund. It was launched in 1958 in South Africa, of all places, because it was not possible to invest in gold in those days in the US, so it was launched down there. It was reincorporated in Bermuda in 2004. It is since 1958 trading as a closed-end fund on the New York Stock Exchange, and it’s been investing in mining companies. When Merk Investments, that’s our team, took on the management in 2019, we repositioned this fund into the junior mining space and it exhibits the hallmarks of what you can do in this space, which we think it is a very volatile space, but it has some amazing opportunities in it. And what these closed-end funds do is they often trade at a discount, meaning there’s a net asset value and then there’s a trading price which is dictated by supply and demand, and these closed-end funds are thrown to these attacks by activists, and what that is these activists, they want to, quote, unquote, “capture” the discount. Meaning if you trade at a 10, 15% discount, they think they can get a pop in price. It’s much more easily said than done because the tools available don’t really work for ASA. Also, to the extent these tools are used, they work very briefly and typically only help the activists leaving the remaining shareholders with big expenses, but in the context of the junior mining space, as you and many of your listeners probably know, you can’t just trade this stuff in and out. These are highly illiquid securities, and even the signaling of a sale of these securities to create liquidity to pay out an activist could create a run on some of these stocks. Shad Marquitz: Yeah, Axel. That’s what I was thinking about when you were talking about it. If some of these very thinly traded juniors all of a sudden had all the selling liquidity show up, it would wreak havoc in the market. We see that even when something like the SILJ just does a rebalance, so you can imagine the impact it would have, especially when the volumes are so low in many of these juniors, but they are picking up and gold and silver have popped up and so have some of the mining stocks. How are you reading the lay of the land in the gold and silver equities in lieu of all this and the interest that you’re seeing from investors? Axel Merk: Sure. Well, first in general, and then maybe specific to our fund. In general, what tends to happen when the price of gold moves higher, the money tends to first move into the producers, the large cap companies, the ETF flow on the passive side, and then it takes a little while before that money goes into the junior companies. That said, if you look at 2019, 2020, 2021, the juniors in particular can substantially outperform. Now, the flip side of that is in the higher of a longer environment that we saw where access to funding is more difficult, and remember these junior companies exploration and development companies that need to have product access to funding, and ind

View Full Filing

View this DEFA14A filing on SEC EDGAR