RE:Claude Announces Closing of the Madsen SaleLink didn't work.
Lets's try this.
SASKATOON , March 4, 2014 /CNW/ - 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") (LGF.V) 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 (CRJ.TO) and the 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.