Silver Standard Resources To Acquire Claude Resources

(RTTNews) - Canadia-based precious metals producer Silver Standard Resources Inc. (SSO.TO, SSRI) Monday said it has agreed to acquire Claude Resources Inc. (CRJ.TO)(CLGRF.OB).

The common shares of Claude Resources will be exchanged on the basis of 0.185 of a Silver Standard common share and C$0.0001 in cash per Claude Resources share, representing total consideration of C$1.65 per share of Claude Resources based on the value of Silver Standard's common shares as of the close of business on March 4. This implies an equity valuation of C$337 million for Claude Resources.

The consideration represents a premium of approximately 25 percent based on the 20-day volume weighted average prices of Silver Standard and Claude Resources and 30 percent to Claude Resources' closing price of C$1.27 per common share on March 4.

The transaction will create a high-quality intermediate precious metals producer with assets in the Americas. Upon completion of the Transaction, existing Silver Standard and Claude Resources shareholders will own around 68 percent and 32 percent of the combined company, respectively.

In 2016, the combined company is expected to produce approximately 390,000 gold equivalent ounces at cash costs of approximately $735 per equivalent ounce of gold sold.

Under the terms of the Agreement, the transaction will be carried out by way of a court approved plan of arrangement and will require the approval of at least 66 2/3 percent of the votes cast by the shareholders of Claude Resources at a special meeting.

One Claude Resources Director will be appointed to the Board of Directors of Silver Standard on completion of the deal.

Macquarie Capital Markets Canada Ltd. is acting as financial advisor and Lawson Lundell LLP is acting as legal counsel to Silver Standard and its Board of Directors.

National Bank Financial Inc. is acting as financial advisor and Blake, Cassels & Graydon LLP is acting as legal counsel to Claude Resources and its Board of Directors.