Claude Resources (CRJ.TSX, AMEX: CGR) reported that the shareholders of St.
Eugene Mining Corporation Limited (SEM.TSXV) have approved the
previously-announced acquisition by Claude of all of the issued and outstanding
shares of St. Eugene that it does not already own pursuant to a court-approved
plan of arrangement. The closing of the Arrangement is conditional on receipt of
final approval from the Supreme Court of British Columbia as well as final
approval from the TSX Venture Exchange, and is expected to occur on or about
January 31, 2012. St. Eugene is a Toronto-based exploration company that is
actively exploring for and developing gold properties, both in Manitoba and
Saskatchewan. The Company's three main assets are the Tartan Lake Gold Mine
Project in Manitoba (100% interest), and, in Saskatchewan, the Amisk Gold
Project (35% interest St. Eugene – 65% interest Claude) and the Amisk North
Gold Project (100% interest). Highlights: * Under the terms of the transaction,
each St. Eugene shareholder will receive 0.0789 shares of Claude Resources and
0.25 common shares of a newly formed, wholly-owned subsidiary of St. Eugene
(referred to as the Spinco) in respect of each St. Eugene share * St. Eugene's
interests in the Tartan Lake Gold Mine Project and approximately C$800,000 in
cash will be transferred to the Spinco * The consideration offered under the
Arrangement is approximately $15 million plus proportionate ownership of Satori
Resources Inc., which will hold the Tartan Lake Gold Mine Project * The
Arrangement is the logical consolidation of the Amisk Gold Project in Canada
Neil McMillan, President and CEO of Claude Resources: "Claude is pleased that
the St. Eugene shareholders have approved the Arrangement. The Company plans on
moving the Amisk Gold Project ahead by conducting and completing a Preliminary
Economic Assessment and will continue to expand and explore the deposit and
other targets defined on the property in 2012." Paolo Lostritto, National Bank
Financial: "We reiterate our Outperform rating and C$3.30 target on Claude
Resources shares…Catalysts continue to be:1) Madsen underground drill results,
2) Seabee shaft deepening coupled with Santoy ramp up, and 3) more Amisk
drilling."
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