Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Claude Resources’ (TSX:CRJ) shareholders approved Wednesday a friendly takeover bid by fellow Canadian Silver Standard Resources (TSX:SSO), announced in early March.
The deal, valued at about $337 million, leaves Claude’s shareholders with about 32% of the combined company.
The deal sees Vancouver-based Silver Standard — which operates mines in Argentina and the United States — acquire all outstanding shares of the Saskatoon-based miner for 0.185 of a Silver Standard share and $0.001 in cash each.
The transaction, valued at about $337 million, leaves Claude’s shareholders with about 32% of the combined company, which will be the new owner of the Seabee gold mine, located about 125 kilometres northeast of La Ronge in northeastern Saskatchewan.
The companies estimate the new firm would produce the equivalent of 390,000 ounces of gold.
With the takeover, Saskatchewan loses its only home-grown gold miner, which last year produced a record-75,748 ounces of the yellow metal.
