VANCOUVER – Silver Standard Resources and Claude Resources of Saskatoon have entered into an agreement whereby Silver Standard will acquire all of the outstanding common shares of Claude, creating an intermediate precious metals producer with assets in the Americas.
Silver Standard is offering 0.185 of its own share and $0.001 in cash per Claude share, representing a total consideration of $1.65 per share of Claude. The offer implies a value of $337 million for Claude Resources. Upon completion of the transaction, Silver Standard and Claude shareholders will own 68% and 32% of the combined company, respectively.
Silver Standard owns and operates the Marigold gold mine in Nevada and the Pirquitas silver mine in Argentina. This year the company expects to produce 320,000 oz of gold equivalent at cash costs of $770 per oz sold.
Claude owns and operates the Seabee gold mine in northern Saskatchewan and the advanced Amisk gold project in Manitoba. The company expects to produce 65,000 to 72,000 oz of gold at cash costs between $700 and $770 per oz of gold this year.
Visit wither www.SilverStandard.com or www.ClaudeResources.com for more information.