ASA Makes Commencement of Tender Offer

ASA Limited, a closed-end fund specializing in gold and other precious mineral investments worldwide, on September 1 commenced a tender offer to purchase up to 720,000 of the Company's issued and outstanding common shares at a price per share, net to the seller in cash, equal to 98 percent of the net asset value per share as determined by the Company at the close of regular trading on the NYSE on the day the tender offer expires.

The tender offer will expire at 12 midnight, Eastern time, on October 2, unless the Company extends the tender offer. The maximum number of shares that the Company will purchase in the tender offer represents 10 percent of the number of currently issued and outstanding shares.

As with many closed-end funds, the market price of a common share of the Company has historically traded at a discount to, i.e., lower than, the net asset value per share. The tender offer will permit tendering shareholders to liquidate at least a portion of their shares at a price per share equal to 98 percent of the net asset value per share.

The Company's Board of Directors has approved the tender offer. However, neither the Company nor its Board of Directors makes any recommendation to any shareholder as to whether to tender or refrain from tendering shares in the tender offer.

D. F. King & Co. has been retained as information agent for the tender offer.

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Related terms: gold