Seabee

Silver Standard Resources has signed an agreement to acquire Canadian-based Claude Resources.

The offer values Claude Resources at C$337m ($252m) in total. The transaction is expected to create an intermediate precious metals producer with assets in the Americas.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Once the transaction concludes, the existing shareholders of Silver Standard and Claude Resources will own about 68% and 32% of the new company, respectively.

The combined company is expected to produce about 390,000 gold equivalent ounces at cash costs of about $735 per equivalent ounce of gold sold.

According to Silver Standard, the deal will also offer increased free cash flow generation and improved financial flexibility.

See Also:

As part of the transaction, safe underground and open pit mining skills would be brought together to realise portfolio growth as well as exploration opportunities.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
"The addition of the Santoy and Seabee mine complexes to our operating portfolio demonstrates our disciplined acquisition strategy to deliver growth and value to our shareholders."

The new company will serve as the new owner of the Claude Resources’ wholly-owned Seabee gold mine located in Saskatchewan.

Silver Standard Resources president and CEO Paul Benson said: "The addition of the Santoy and Seabee mine complexes to our operating portfolio demonstrates our disciplined acquisition strategy to deliver growth and value to our shareholders.

"We also acquire a large underexplored land position with significant exploration upside."

Claude Resources president and CEO Brian Skanderbeg said: "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 that we can share in the growth opportunities that exist going forward."

Image: The combined company will be the new owner of the Seabee gold mine in Saskatchewan. Photo: courtesy of Claude Resources Inc.