Claude Resources Closes Debt Financing with Crown Capital Partners Inc.
SASKATOON, SK, April 8, 2013
TSX - CRJ
NYSE MKT - CGR
SASKATOON, SK, April 8, 2013 /PRNewswire/ - Claude Resources Inc. (TSX: CRJ)
(NYSE MKT: CGR) ("Claude" and or the "Company") today reported that it has
closed the previously announced long-term debt facility of $25 million with
Crown Capital Partners Inc. ("CCP"), in addition to its expanded credit
facilities with Canadian Western Bank ("CWB").
Neil McMillan, President and CEO, stated, "We are satisfied we now have access
to $50 million of debt facitlities at a blended cost of capital of
approximately eight percent. Closing the debt facility with CCP positions the
Company to be well financed to implement its growth plans going forward."
CCP Financing Summary
The CCP offering consists of a five (5) year $25 million long-term 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. In conjunction with closing the CCP long-term debt
facility, the Company granted an additional 5.75 million common share purchase
warrants at a strike price of $0.70 which are exercisable at any time until
the date that is five (5) years following the close of the transaction.
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%
Use of Proceeds
Claude believes that its new capital structure will advance the Company over
the long term without penalizing shareholders through major equity financings.
The CCP and CWB 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 1,023,000 ounces of gold from the Seabee Gold Project. Claude also owns
100 percent of the Madsen property near Red Lake, Ontario and 100 percent of
the Amisk Gold Property in northeastern Saskatchewan.
About Crown Capital Partners Inc.
CCP is a leading provider of growth capital to middle market companies
throughout Canada. CCP 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 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 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 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 in this news release are made as of the date of
this news release, being April 8, 2013 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
SOURCE CLAUDE RESOURCES INC.
Rick Johnson, Chief Financial Officer
Phone: (306) 668-7505
Marc Lepage, Manager, Investor Relations
Phone: (306) 668-7501
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