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Silver Standard (SSRI) Closes Claude Resources Acquisition
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Silver Standard Resources Inc. announced that it has closed the buyout of Claude Resources Inc. Silver Standard has repaid all amounts outstanding under Claude Resources' term and revolving credit facilities that totaled roughly C$17.9 million.
Silver Standard bought all of the outstanding common shares of Claude Resources for a total consideration of around 37.4 million Silver Standard common shares and a cash consideration of $0.2 million. With this, Silver Standard’s issued and outstanding shares are now around 118.4 million.
The integrated company is expected to produce about 390,000 gold equivalent ounces at cash costs of $715 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. This transaction will provide production growth opportunities for Silver Standard, along with the exploration of more than 19,000 hectares of the Seabee property and Marigold in Nevada, and the Pirquitas/Chinchillas properties in Argentina.
The buyout will also increase the value for shareholders of Silver Standard. 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 for opportunities in mineral reserves conversion. The credit quality will be enhanced as well, leading to a stronger balance sheet.
Shares of Claude Resources are expected to be delisted from the Toronto Stock Exchange and will cease to trade on the OTCQB on or about the close of trading on Jun 6.
Silver Standard currently carries a Zacks Rank #2 (Buy).
Other favorably placed stocks in the mining space include First Majestic Silver Corp. (AG - Free Report) , Fortuna Silver Mines Inc. (FSM - Free Report) and Great Panther Silver Ltd . All of them hold a Zacks Rank #2.
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Silver Standard (SSRI) Closes Claude Resources Acquisition
Silver Standard Resources Inc. announced that it has closed the buyout of Claude Resources Inc. Silver Standard has repaid all amounts outstanding under Claude Resources' term and revolving credit facilities that totaled roughly C$17.9 million.
Silver Standard bought all of the outstanding common shares of Claude Resources for a total consideration of around 37.4 million Silver Standard common shares and a cash consideration of $0.2 million. With this, Silver Standard’s issued and outstanding shares are now around 118.4 million.
The integrated company is expected to produce about 390,000 gold equivalent ounces at cash costs of $715 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. This transaction will provide production growth opportunities for Silver Standard, along with the exploration of more than 19,000 hectares of the Seabee property and Marigold in Nevada, and the Pirquitas/Chinchillas properties in Argentina.
The buyout will also increase the value for shareholders of Silver Standard. 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 for opportunities in mineral reserves conversion. The credit quality will be enhanced as well, leading to a stronger balance sheet.
Shares of Claude Resources are expected to be delisted from the Toronto Stock Exchange and will cease to trade on the OTCQB on or about the close of trading on Jun 6.
Silver Standard currently carries a Zacks Rank #2 (Buy).
Other favorably placed stocks in the mining space include First Majestic Silver Corp. (AG - Free Report) , Fortuna Silver Mines Inc. (FSM - Free Report) and Great Panther Silver Ltd . 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 >>