Silver Standard Acquiring Claude Resources for C$337M
All three properties have exploration potential.
In 2015, the Marigold mine produced 207,006 oz of gold; the Pirquitas mine produced 10.3 million oz of silver; and the Seabee complex produced 75,748 oz of gold. Silver Standard forecasts that in 2016, the combined company will produce approximately 390,000 gold equivalent oz at cash costs of approximately $735/gold equivalent oz.
Upon completion of the transaction, existing Silver Standard and Claude Resources shareholders will own approximately 68% and 32% of the combined company, respectively.
Silver Standard President and CEO Paul Benson said, “Through this transaction, we are adding a third high-quality, strong-cash-fl owing operation located in Canada, one of the best places in the world to operate mines. We also acquire a large, under-explored land position with signifi cant exploration upside. With fi nancial synergies and our strong balance sheet, the combined company is well positioned to maximize value from our assets and pursue further growth opportunities.”
The transaction requires the approval of at least 66 2/3% of the votes cast by Claude shareholders at a special meeting, while the issuance of shares by Silver Standard under the agreement is subject to the approval of the majority of votes cast by Silver Standard shareholders at a special meeting. The shareholder meetings are scheduled for mid-May.
Both companies’ boards of directors have unanimously approved the transaction. Silver Standard Resources is headquartered in Vancouver, British Columbia. Claude Resources is headquartered in Saskatoon, Saskatchewan.