Trading Symbol
TSX - CRJ
OTCQB - CLGRF
SASKATOON,
March 4, 2014 /PRNewswire/ - Claude
Resources Inc. ("Claude" and or the "Company") (TSX: CRJ; OTCQB:
CLGRF) today announced the closing of its previously announced
agreement (the "Agreement") whereby Laurentian Goldfields Ltd.
("Laurentian") (TSX.V: LGF) acquired Claude's 100 percent interest
in the Madsen Gold Project in Red Lake,
Ontario Canada.
Claude received CDN $6.25
million cash upon closing of the transaction and will
receive CDN $2.5 million cash or
equity (at Laurentian's option) payable six months following the
close of the transaction. Cash proceeds will be utilized to reduce
bank debt and for working capital purposes. In addition,
Claude received approximately 9.8 million shares of Laurentian,
representing approximately 10.1 percent ownership in Laurentian.
Claude will have the option to participate in any future equity
offerings to maintain ownership position in Laurentian so long as
Claude retains a minimum 9.9 percent ownership interest in
Laurentian.
Neil McMillan,
President and CEO stated, "We are pleased to see the support
Laurentian has received in raising the capital to advance the
Madsen Gold Project. The closing of the transaction will provide
Claude short term benefits through cash considerations, and through
our equity ownership, provide our shareholders with exposure to the
Madsen project."
Laurentian intends to focus exploration efforts
on increasing the existing high grade gold resource at the Madsen
Gold Project, through development of prospective targets
along the 12 kilometre long Madsen Mine
Trend and the 10 kilometre long '8 Zone' corridor, while
simultaneously assessing a low-capital production opportunity.
Clarus Securities Inc. acted as financial
advisor to Claude and Macquarie Capital Markets Canada Ltd. acted
as financial advisor to Laurentian.
Strategic Review
In addition, the Company has engaged Deloitte
Corporate Finance Inc. as strategic and financial advisor to
undertake a strategic review of Claude's business plan and capital
structure and to explore alternatives with the objective to
maximize value for all shareholders.
The Company has not established a definitive
timeline to complete its review and there can be no assurance that
this process will result in any specific strategic or financial or
other value-creating transaction. The Company does not currently
intend to disclose further developments with respect to this
process, unless and until the Company approves a specific
transaction, concludes its review of the strategic alternatives or
otherwise determines there is material information to
communicate.
About Claude Resources Inc.
Claude Resources Inc. is a publicly
traded gold exploration and mining company based in Saskatoon, Saskatchewan, whose shares trade on
the Toronto Stock Exchange (TSX: CRJ) and the OTCQB (OTCQB: CLGRF).
Its asset base is located entirely in Canada and since 1991, Claude has produced
over 1,000,000 ounces of gold from its Seabee Gold Operation in
northeastern Saskatchewan. The
Company also owns 100 percent of the Amisk Gold Project in
northeastern Saskatchewan.
About Laurentian Goldfields Ltd.
Laurentian Goldfields Ltd. is a team of highly
skilled exploration professionals led by Darin Labrenz, President & CEO, focused on
the generation of high quality exploration projects. Laurentian's
use of leading edge exploration concepts and techniques has
attracted major mining companies as strategic mining investors and
partners. Laurentian's experienced management team and board
of directors is committed to utilizing its extensive industry
experience to identify and acquire exceptional exploration and
development opportunities, unlocking value and shareholder
growth.
As part of this transformational acquisition,
upon closing Laurentian will take the necessary steps and seek
shareholder approval to compose its Board of the following mining
professionals:
Darin Labrenz
Mark O'Dea
Graeme Currie
Troy Fierro
Lenard Boggio
CAUTION REGARDING FORWARD-LOOKING INFORMATION
All statements, other than statements of
historical fact, contained or incorporated by reference in this
news release and constitute "forward-looking information"
within the meaning of applicable Canadian securities laws and
"forward-looking statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995 (referred
to herein as "forward-looking statements"). Forward-looking
statements include, but are not limited to, statements with respect
to the future price of gold, the estimation of mineral reserves and
resources, the realization of mineral reserve estimates, the timing
and amount of estimated future production, costs of production,
capital expenditures, costs and timing of the development of new
deposits, success of exploration activities, permitting time lines,
currency exchange rate fluctuations, requirements for additional
capital, government regulation of mining operations, environmental
risks, unanticipated reclamation expenses, title disputes or claims
and limitations on insurance coverage. Generally, these
forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate" or
"believes", or the negative connotation thereof or variations of
such words and phrases or state that certain actions, events or
results, "may", "could", "would", "might" or "will be taken",
"occur" or "be achieved" or the negative connotation thereof.
All forward-looking statements are based on
various assumptions, including, without limitation, the
expectations and beliefs of management, the assumed long-term price
of gold, that the Company will receive required permits and access
to surface rights, that the Company can access financing,
appropriate equipment and sufficient labour, and that the political
environment within Canada will
continue to support the development of mining projects in
Canada.
Forward-looking statements are subject to known
and unknown risks, uncertainties and other factors that may cause
the actual results, level of activity, performance or achievements
of Claude to be materially different from those expressed or
implied by such forward-looking statements, including but not
limited to: actual results of current exploration activities;
environmental risks; future prices of gold; possible variations in
ore reserves, grade or recovery rates; mine development and
operating risks; accidents, labour issues and other risks of the
mining industry; delays in obtaining government approvals or
financing or in the completion of development or construction
activities; and other risks and uncertainties, including but not
limited to those discussed in the section entitled "Business Risk"
in the Company's Annual Information Form. These risks and
uncertainties are not, and should not be construed as being,
exhaustive.
Although Claude has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking statements,
there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance
that such statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking statements.
Forward-looking statements in this news release
are made as of the date of this news release and accordingly, are
subject to change after such date. Except as otherwise
indicated by Claude, these statements do not reflect the potential
impact of any non-recurring or other special items that may occur
after the date hereof. Forward-looking statements are
provided for the purpose of providing information about
management's current expectations and plans and allowing investors
and others to get a better understanding of our operating
environment.
Claude does not undertake to update any
forward-looking statements that are incorporated by reference
herein, except in accordance with applicable securities
laws.
SOURCE Claude Resources Inc.