Claude Resources Secures Debt Financing with Canadian Western Bank and Crown
Capital Partners Inc.
SASKATOON, Jan. 17, 2013
TSX - CRJ
NYSE MKT - CGR
SASKATOON, Jan. 17, 2013 /PRNewswire/ - Claude Resources Inc. (TSX-CRJ; NYSE
MKT-CGR) ("Claude" and or the "Company") today reported that it has expanded
its current debt facilities with its existing bank, Canadian Western Bank
("CWB") and, in addition, has come to an agreement with Crown Capital Partners
Inc. ("CCP") for a debt facility of $25 million.
CWB Financing Summary
The Company has expanded its current debt facilities to $25 million, of which
$8.6 million is currently drawn. The current $8.6 million consists of leases,
demand loans and a line of credit. The debt expansion is structured as
Facility Previous Amount Current Amount
Line of Credit $5,000,000 $10,000,000
Leases/Demand Loans $7,000,000 $10,000,000
Revolving Loan NIL $5,000,000
Interest rates are both fixed and floating and carry a weighted average rate
of approximately 4.5 percent.
CCP Financing Summary
The CCP offering consists of a five (5) year $25 million debt facility which
carries an interest rate of 10 percent of the outstanding principal,
compounded and payable monthly. Principal payments, due to begin in 2014, are
payable monthly. The facility includes 5.75 million warrants at a strike price
of $0.70 and can be exercisable at any time from the closing of the
transaction to 5 years following the closing of the transaction. The issuance
of warrants is subject to approval from each of the Toronto Stock Exchange and
the New York Stock Exchange. Closing of the CCP financing is subjective to
customary conditions precedent.
Principal Repayment Terms
Period Monthly Amount Annual Amount
Months 1 - 12 NIL NIL
Months 13 - 59 $300,000 $3,600,000
Due at Maturity $10,900,000
Months Following Closing Prepayment Fee
Months 13 - 24 2%
Months 25 - 36 1%
Months 37 - 60 0%
Neil McMillan, President and CEO, stated, "We are pleased to have both CWB and
Crown Capital demonstrating their confidence and support of our business plan.
We are satisfied with our blended cost of capital of approximately 8 percent.
It represents the confidence our debt providers have in our ability to manage
and retire the debt upon maturity. Our track record over the past 21 years has
certainly helped us build a good relationship with CWB and Crown. The Company
expects to be able to grow the Seabee Gold Operation production by 10 to 15
percent compounded annually over the next 5 years and we are happy to have CWB
and Crown as partners in that growth."
Use of Proceeds
The Company believes that its new capital structure will advance the Company
over the long term without penalizing shareholders through major equity
financings. The new debt facilities are intended for the retirement of the
$9.8 million debenture due in May 2013, for expansion capital at the Seabee
Gold Operation and for general working capital purposes. The Company is
confident that it can efficiently service and repay the debt facilities
through growing operating cash flows from the Seabee Gold Operation.
About Claude Resources Inc.
Claude Resources Inc. is a gold producer with shares listed on both the
Toronto Stock Exchange (TSX-CRJ) and the NYSE MKT (NYSE MKT-CGR).The Company
is also engaged in the exploration and development of gold mineral reserves
and mineral resources. The Company's entire asset base is located in
Canada.Its main revenue generating asset is the 100 percent owned Seabee Gold
Project, located in northern Saskatchewan. Since 1991, Claude has produced
over 1,010,000 ounces of gold from the Seabee Gold Project. Claude also owns
100 percent of the Madsen property near Red Lake, Ontario and 100 percent
interest in the Amisk Gold Property in northeastern Saskatchewan.
About Canadian Western Bank
Canadian Western Bank (TSX: CWB) is the largest publicly traded Canadian bank
headquartered in Western Canada. CWB and its operating affiliates, which are
together known as Canadian Western Bank Group, offer a diversified range of
financial services through 41 banking branches, eight trust locations, two
centralized insurance offices, a focused commercial equipment leasing centre
and one wealth management location.
About Crown Capital Partners Inc.
Crown Capital Partners is a leading provider of growth capital to middle
market companies throughout Canada. Crown Capital Partners focuses on
providing specialized financing solutions including structured equity,
subordinated term, and bridge loans for acquisitions, management buy-outs,
growth financings and recapitalizations.
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 successful closing of
the transaction and expected use of funds under the new debt facilities, 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
All forward-looking statements are based on various assumptions, including,
without limitation, the expectations and beliefs of management, the
satisfaction of closing conditions for the transaction and receipts necessary
approvals, 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
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
Claude does not undertake to update any forward-looking statements that are
incorporated by reference herein, except in accordance with applicable
SOURCE CLAUDE RESOURCES INC.
Rick Johnson, Chief Financial Officer
Phone: (306) 668-7505
Marc Lepage, Manager, Investor Relations
Phone: (306) 668-7501
Press spacebar to pause and continue. Press esc to stop.