Vancouver mining company strikes deal to buy Saskatoon gold miner Claude Resources
Claude's shareholders to own 32% of combined company
Silver Standard Resources has a friendly deal to acquire Saskatoon-based Claude Resources, which operates the Seabee gold mine at Laonil Lake, approximately 125 kilometres northeast of La Ronge in northeastern Saskatchewan.
The offer values Claude Resources at C$377 million in total or the equivalent of about $1.65 per share — mostly from shares of Vancouver-based Silver Standard.
Claude's shareholders would own about 32 per cent of the combined company.
The companies — which have a total of three operating mines in Canada, the United States and Argentina — estimate the combined operation would produce the equivalent of 390,000 ounces of gold.
Silver Standard is offering 0.185 of a common share and one-hundredth of a cent in cash per Claude Resources share.