Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,516.27 98.74 0.68%
TOPIX 1,173.37 6.78 0.58%
HANG SENG 22,760.24 64.23 0.28%

Claude Resources Secures Debt Financing with Canadian Western Bank and Crown Capital Partners Inc.



 Claude Resources Secures Debt Financing with Canadian Western Bank and Crown
                            Capital Partners Inc.

PR Newswire

SASKATOON, Jan. 17, 2013

Trading Symbols
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 
follows:

                                           
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

Prepayment Terms

                          
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 
connotation thereof.

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 
statements.

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 
operating environment.

Claude does not undertake  to update any  forward-looking statements that  are 
incorporated  by  reference  herein,  except  in  accordance  with  applicable 
securities laws.

 

 

SOURCE CLAUDE RESOURCES INC.

Contact:

Rick Johnson, Chief Financial Officer
Phone: (306) 668-7505
Or
Marc Lepage, Manager, Investor Relations
Phone: (306) 668-7501

Email: ir@clauderesources.com
Website: www.clauderesources.com
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement