A Vancouver mining company has purchased a Saskatoon-based company with operations in northern Saskatchewan.
Silver Standard Resources has a friendly deal to acquire Claude Resources at $377 million or around $1.65 a share.
Claude Resources operates the Seabee gold Mine around 125 km northeast of La Ronge.
The Saskatoon-based company says they welcome the deal and hope the transaction will create a high-quality precious metals producer in the Americas.
“Our long-term production profile, free cash flow, strong balance sheet and significant exploration potential are a great addition to Silver Standard’s portfolio of producing mines and development projects and we are excited we can share in the growth opportunities that exist going forward,” says Claude Resources President and CEO Brian Skanderberg.
With the merger, the two companies now own a combined total of three mines in Canada, the United States and Argentina.
The estimated combined operation of these three mines would produce the equivalent of 390,000 ounces of gold.
Claude’s shareholders would still own about 32 per cent of the shares.