Retired businessman Tom Budd purchased Untitled, Dawn on Round Lake in Calgary on Sunday. (Levis Fine Art Auctions)

A retired Calgary investment banker and fledgling art collector is the new owner of a small Tom Thomson painting unseen by the public for close to 100 years.

Tom Budd, who said he only bought his first art book three weeks ago, paid $350,000 for Untitled, Dawn on Round Lake at the Nickle Arts Museum in Calgary on Sunday — much less than Levis Fine Art Auctions' pre-sale estimate.

Thomson painted the oil sketch during a hunting trip in 1915. He presented the small work as a gift to a doctor friend who had accompanied him. The painting depicts a lake near Algonquin Park, with a deep blue hill rising in the background and bare spindly trees pointing to wisps of clouds.

The artwork had been held by the doctor's family for 94 years, emerging just weeks ago when one of his heirs brought it — by bus and wrapped in a towel — to Levis Fine Art's Calgary offices.

Much higher price expected

With Thomson works fetching blue chip prices over the years, the auction house had expected the painting to sell for between $500,000 and $600,000.

However, when auctioneer Doug Levis opened bidding at $600,000 on Sunday, he had no offers. Levis eventually dropped his opening price to $350,000, with Budd the only prospective buyer willing to make an offer. However, the move was controversial.

"It was an issue that we had a minimum price, a reserve price [of $400,000]," Levis told CBC News.

Budd's bid was initially rejected, but after a private meeting and some negotiation, the unnamed seller agreed to Budd's price.

The final price was $409,500 with the auction house premium.

"I am really excited about owning it. I am really proud with the way this auction ended up going," Budd told CBC News.

"This painting is a wonderful piece of Canadian history and I am proud to be its second owner," he added in a statement.