Toronto Stock Exchange
Trading symbol - CRJ
AMEX - CGR
SASKATOON, June 16 /CNW/ - Claude Resources Inc. (CRJ.TSX : CGR.AMEX)
today announced that it has raised an additional $1,051,000 in the secondary
closing of its debenture offering for a total of $17,395,000.
"It is our view that raising close to $17.4 Million in a challenging
credit environment is a significant and very positive achievement," stated
Claude Resources' President and Chief Executive Officer Neil McMillan. "We
believe this reflects a high level of confidence about the future of the
"The decision to acquire funds through a debenture is part and parcel of
Claude Resources' strategic plan to minimize share dilution as it increases
production capacity at the Seabee mining operation and continues an aggressive
exploration program at the Madsen property at Red Lake, Ontario," added
Each of the 17,395 debenture units, which are priced at Cdn $1,000,
include 100 warrants. Each warrant entitles the holder to acquire one common
share in the capital of Claude Resources, at an exercise price of Cdn $1.60,
until May 22, 2013. The debentures, which mature on May 23, 2013 and contain
an early redemption feature, pay interest at a rate of 12.0% per annum with
interest paid monthly and the principal paid on maturity.
Finders' fees of up to 5% of the gross proceeds of the Offering are
payable in cash or shares upon the closing of the Offering.
The Offering was conditional upon the Company making an application to
the Toronto Stock Exchange and using commercially reasonable efforts to list
the Debentures and the Warrants on the Toronto Stock Exchange following the
expiration of the hold period for the Debentures and the Warrants, as
applicable. The Company made such application and is continuing to use
commercially reasonable efforts to effect such listing.
Net proceeds from the offering will be used for expenditures on the
Company's Seabee operations, for exploration of the Company's Madsen project
in Red Lake, Ontario and for general corporate purposes.
The securities offered have not been registered under the United States
Securities Act of 1933, as amended, and may not be offered or sold in the
United States absent registration or an applicable exemption from the
registration requirements. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall there be any sale of the
securities in any state in which such offer, solicitation or sale would be
Claude Resources Inc. is a public company based in Saskatoon,
Saskatchewan, whose shares trade on the Toronto Stock Exchange (TSX-CRJ) and
the American Stock Exchange (AMEX-CGR). Claude is a gold exploration and
mining company. The Company also owns producing oil and natural gas assets.
The Company's entire asset base is located in Canada. Since 1991, Claude has
produced approximately 800,000 ounces of gold from its Seabee mine in
northeastern Saskatchewan. The Company also owns 100% of the 10,000 acre
Madsen property in the prolific Red Lake gold camp of northwestern Ontario.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
This news release contains certain forward-looking statements relating
but not limited to the Company's expectations, intentions, plans and beliefs.
Forward-looking information can often be identified by forward-looking words
such as "anticipate", "believe", "expect", "goal", "plan", "intent",
"estimate", "may" and "will" or similar words suggesting future outcomes or
other expectations, beliefs, plans, objectives, assumptions, intentions or
statements about future events or performance. Forward-looking information may
include reserve and resource estimates, estimates of future production, unit
costs, costs of capital projects and timing of commencement of operations, and
is based on current expectations that involve a number of business risks and
uncertainties. Factors that could cause actual results to differ materially
from any forward-looking statement include, but are not limited to, failure to
establish estimated resources and reserves, the grade and recovery of mined
ore varying from estimates, capital and operating costs varying significantly
from estimates, delays in obtaining or failures to obtain required
governmental, environmental or other project approvals, inflation, changes in
exchange rates, fluctuations in commodity prices, delays in the development of
projects and other factors. Forward-looking statements are subject to risks,
uncertainties and other factors that could cause actual results to differ
materially from expected results.
Potential shareholders and prospective investors should be aware that
these statements are subject to known and unknown risks, uncertainties and
other factors that could cause actual results to differ materially from those
suggested by the forward-looking statements. Shareholders are cautioned not to
place undue reliance on forward-looking information. By its nature,
forward-looking information involves numerous assumptions, inherent risks and
uncertainties, both general and specific, that contribute to the possibility
that the predictions, forecasts, projections and various future events will
not occur. Claude Resources undertakes no obligation to update publicly or
otherwise revise any forward-looking information whether as a result of new
information, future events or other such factors which affect this
information, except as required by law.
%SEDAR: 00000498E %CIK: 0001173924
For further information:
For further information: Neil McMillan, President and Chief Executive
Officer, (306) 668-7505; or Rick Johnson, CA, Chief Financial Officer, (306)
668-7505, Email: firstname.lastname@example.org, Website: