Silver Standard completes Claude Resources acquisition for $252m
Silver Standard Resources has completed the acquisition of Canadian-based Claude Resources in a deal worth C$337m ($252m).
Announced in March, the acquisition will add Claude Resources' wholly owned Seabee gold mine in Saskatchewan to Silver Standard's operating portfolio.
With this, Silver Standard is expected to produce 390,000 pro forma gold equivalent ounces per year at cash costs of $715 per gold equivalent ounce sold this year.
Silver Standard Resources president and CEO Paul Benson said: "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.
"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."
The transaction has brought together underground and open-pit mining skills to realise portfolio growth as well as exploration opportunities.
With closing of the acquisition, Silver Standard also repaid all amounts totaling about C$17.9m outstanding under Claude Resources term and revolving credit facilities.
The existing shareholders of Silver Standard now own 68% of the new company, while the shareholders of Claude Resources own a 32% interest.
The Seabee gold mine operation comprises the Santoy and the Seabee underground sites.
Ore from both mines is processed at the Seabee mill facility, which has been in operation since 1991 and produces doré bars that are shipped to a third-party refinery.