We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Shareholders Okay Silver Standard's Claude Resources Buyout
Read MoreHide Full Article
Silver Standard Resources Inc. and Claude Resources Inc. declared that they have received the requisite approvals from shareholders for their previously announced plan of arrangement. Per the plan, Silver Standard entered into an agreement with Claude Resources to purchase all of the outstanding common shares of the latter to create a high-quality intermediate precious metals producer with assets in the Americas.
On closing of the arrangement, all of Claude Resources’ issued and outstanding common shares will be exchanged on the basis of 0.185 of a Silver Standard common share and C$0.001 in cash per Claude Resources common share.
The arrangement was approved by about 94% of the votes cast by Claude Resources’ shareholders at the special meeting of shareholders. Silver Standard’s shareholders cleared the issuance of the Consideration Shares by roughly 93% of the votes cast at Silver Standard's annual and special meeting of shareholders.
The transaction is expected to complete on May 31 following receipt of final court clearance and other customary closing conditions.
Silver Standard’s shares fell around 6.7% to close at $9.31 on May 18.
The integrated company is expected to produce about 390,000 gold equivalent ounces at cash costs of around $735 per equivalent ounce of gold sold in 2016. The acquisition will also lead to an increase in cash flow generation, improved credit quality and better financial flexibility. Moreover, the transaction will provide production growth opportunities for Silver Standard, along with exploration of more than 19,000 hectare Seabee property and Marigold in Nevada and Pirquitas/Chinchillas properties in Argentina.
Further, the acquisition will be beneficial to the shareholders of Silver Standard in a number of ways. The company will be able to extend its presence in Canada and achieve geographical diversification. It will also entail minimum capital investment and provide strong mineral resources to mineral reserves conversion opportunity. The credit quality will be enhanced as well, leading to a stronger balance sheet.
Silver Standard currently carries a Zacks Rank #2 (Buy).
Other well-placed companies in the silver mining space include First Majestic Silver Corp. (AG - Free Report) , Great Panther Silver Ltd and Hochschild Mining PLC (HCHDF - Free Report) . All of them hold a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Shareholders Okay Silver Standard's Claude Resources Buyout
Silver Standard Resources Inc. and Claude Resources Inc. declared that they have received the requisite approvals from shareholders for their previously announced plan of arrangement. Per the plan, Silver Standard entered into an agreement with Claude Resources to purchase all of the outstanding common shares of the latter to create a high-quality intermediate precious metals producer with assets in the Americas.
On closing of the arrangement, all of Claude Resources’ issued and outstanding common shares will be exchanged on the basis of 0.185 of a Silver Standard common share and C$0.001 in cash per Claude Resources common share.
The arrangement was approved by about 94% of the votes cast by Claude Resources’ shareholders at the special meeting of shareholders. Silver Standard’s shareholders cleared the issuance of the Consideration Shares by roughly 93% of the votes cast at Silver Standard's annual and special meeting of shareholders.
The transaction is expected to complete on May 31 following receipt of final court clearance and other customary closing conditions.
Silver Standard’s shares fell around 6.7% to close at $9.31 on May 18.
The integrated company is expected to produce about 390,000 gold equivalent ounces at cash costs of around $735 per equivalent ounce of gold sold in 2016. The acquisition will also lead to an increase in cash flow generation, improved credit quality and better financial flexibility. Moreover, the transaction will provide production growth opportunities for Silver Standard, along with exploration of more than 19,000 hectare Seabee property and Marigold in Nevada and Pirquitas/Chinchillas properties in Argentina.
Further, the acquisition will be beneficial to the shareholders of Silver Standard in a number of ways. The company will be able to extend its presence in Canada and achieve geographical diversification. It will also entail minimum capital investment and provide strong mineral resources to mineral reserves conversion opportunity. The credit quality will be enhanced as well, leading to a stronger balance sheet.
Silver Standard currently carries a Zacks Rank #2 (Buy).
Other well-placed companies in the silver mining space include First Majestic Silver Corp. (AG - Free Report) , Great Panther Silver Ltd and Hochschild Mining PLC (HCHDF - Free Report) . All of them hold a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>