Claude Resources Inc. ("Claude" and or the "Company") (TSX: CRJ; OTCQB: CLGRF)today announced that it has entered into a Definitive Agreement (the "Agreement") to sell Claude's 100 percent interest in the Madsen Gold Project in Red Lake, Ontario Canada to Laurentian Goldfields Ltd. ("Laurentian") (TSX.V: LGF).
Under the terms of the Agreement, Claude will receive cash and equity ("Consideration") from Laurentian. Consideration will consist of CDN $3.75 million cash payable upon closing of the transaction, CDN $2.5 million cash payable three months following the closing of the transaction, CDN $2.5 million cash or equity (at Laurentian's option) payable six months following the close of the transaction and share consideration representing 19.9 percent of Laurentian's shares outstanding following the closing of the transaction. Claude will have the option to participate in any future equity offerings to maintain ownership position in Laurentian so long as Claude retains a minimum 9.9 percent ownership interest in Laurentian.
Neil McMillan, President and CEO stated, "The sale of the Madsen Gold Project aligns with Claude's strategic plan to focus on improving the Company's cash flow, margins and Balance Sheet. Laurentian's Management have a proven track record in exploration and development of gold assets and have significant experience and knowledge of the Red Lake gold camp. With Laurentian's strong technical team, we are confident in the opportunity that exists at the Madsen asset and are pleased that our shareholders, through Claude's equity ownership in Laurentian, will retain exposure to the potential upside in its advancement."
Laurentian intends to focus exploration efforts on increasing the existing high grade gold resource at the Madsen Gold Project, through development of prospective targets along the 12 km-long Madsen Mine Trend and the 10 km-long '8 Zone' corridor, while simultaneously assessing a low-capital production opportunity.
Closing of the Madsen transaction is expected in February 2014 and is subject to Laurentian receiving all required shareholder, regulatory and third party consents, satisfaction of customary closing conditions and the completion of a financing by Laurentian to raise minimum gross proceeds of CDN $7.5 million.
Clarus Securities Inc. is acting as financial advisor to Claude and Macquarie Capital Markets Canada Ltd. is acting as financial advisor to Laurentian with respect to Laurentian's acquisition and financing.
About Laurentian Goldfields Ltd.
Laurentian Goldfields Ltd. is a team of highly skilled exploration professionals led by Darin Labrenz, President & CEO, focused on the generation of high quality exploration projects. Laurentian's use of leading edge exploration concepts and techniques has attracted major mining companies as strategic mining investors and partners. Laurentian's experienced management team and board of directors is committed to utilizing its extensive industry experience to identify and acquire exceptional exploration and development opportunities, unlocking value and shareholder growth.
