Trading Symbols: TSX: CRJ, OTCQB: CLGRF
SASKATOON, March 20, 2014 /PRNewswire/ - Claude Resources
Inc. ("Claude" and or the "Company") (TSX: CRJ; OTCQB: CLGRF) today
announced that it has completed a Net Smelter Return ("NSR")
royalty agreement with Orion Mine Finance Fund ("Orion") on the
Seabee Gold Operation for proceeds of U.S. $12 million for a three (3) percent NSR.
Neil McMillan,
President and CEO stated, "Orion's partnership comes at a pivotal
time for Claude and specifically for the Seabee Gold Operation as
we move the Santoy Gap into our production profile. Orion's
confidence in our long-term plan demonstrates the opportunities
that exist at the Seabee Gold Operation to increase production,
margins and, in turn, shareholder value. The combination of the
royalty proceeds and the sale of the Madsen Gold Project provide
the Company with the financial strength to execute on our long-term
plan."
Transaction Summary
Under the terms of the NSR, Claude will receive
U.S. $12 million for a three (3)
percent NSR on production from the Seabee Gold Operation. The NSR
provides Claude with the option to repurchase half or 1.5 percent
of the 3 percent NSR for U.S. $12
million, expiring on December 31,
2016. The NSR payments will be paid quarterly in cash or in
physical gold at the average price of gold in each calendar
month.
The use of proceeds from the transaction will be
used for further development at the Seabee Gold Operation and for
general working capital purposes.
Medalist Capital Ltd has acted as advisor to
Claude with respect to the NSR purchase.
Claude Resources Inc. is a public company
based in Saskatoon, Saskatchewan,
whose shares trade on the Toronto Stock Exchange (TSX: CRJ) and the
OTCQB (OTCQB: CLGRF). Claude is a gold exploration and mining
company with an asset base located entirely in Canada. 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.
SOURCE Claude Resources Inc.