Silver Standard Resources and Claude Resources announced that Silver Standard’s acquisition of Claude Resources is complete.
“Adding the Seabee gold operation together with Silver Standard’s Marigold and Pirquitas mines creates a quality intermediate precious metals producer, having both scale and margin with pro forma 2016 production in the order of 390,000 gold-equivalent ounces,” said Paul Benson, president and CEO, Silver Standard Resources. “With exposure to both gold and silver production, an attractive cost profile and a very strong balance sheet, we are well positioned to continue to pursue both internal and external opportunities to create value for shareholders.”
Effective immediately, Brian Booth, the former chairman of Claude Resources Board of Directors, has been appointed to the Silver Standard Board of Directors. Booth brings more than 30 years of experience in the mining industry and currently serves as the president and CEO of Pembrook Mining Corp., an exploration company based in Vancouver, Canada.
“We welcome Claude Resources employees and shareholders to Silver Standard and look forward to building this exciting company together,” said Peter Tomsett, chairman, Silver Standard Resources. “We are also very pleased to add Mr. Booth’s extensive industry expertise and his experience with Claude Resources to Silver Standard’s Board of Directors.”
Concurrently with the closing of the acquisition, Silver Standard repaid all amounts outstanding under Claude Resources term and revolving credit facilities, which totaled approximately C$17.9 million.
Silver Standard acquired all of the outstanding common shares of Claude Resources for total consideration of approximately 37.4 million Silver Standard common shares and cash consideration of $200,000. Silver Standard now has approximately 118.4 million shares issued and outstanding. Claude Resources shares are expected to be delisted from the Toronto Stock Exchange and cease to trade on the OTCQB on or about the close of trading on June 6.