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Silver Standard Resources (TSX:SSO) has completed the $337 million takeover of fellow Canadian miner Claude Resources (TSX:CRJ), initially announced in early March.
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.
With the addition of La Ronge mine, Silver Standard expects to produce the equivalent of 390,000 ounces of gold.
The acquisition 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.
Brian Booth, the former chairman of Claude Resources’ board of directors has been appointed to the Silver Standard’s board, effective immediately.
With the addition of La Ronge, Silver Standard will now produce the equivalent of 390,000 ounces of gold at cash costs of $715 per gold equivalent ounce sold this year.
The transaction means that Saskatchewan loses its only home-grown gold miner, which last year produced a record-75,748 ounces of the yellow metal.
Silver Standard now has approximately 118.4 million shares issued and outstanding. Claude Resources’ stock is 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, 2016.
