October 26, 2011 / 12:22 PM / 6 years ago

Claude Resources ups offer for St.Eugene Mining

(Reuters) - Precious metals miner Claude Resources CRJ.TO said it has increased its offer for the rest of St. Eugene Mining Corp SEM.V in a stock deal that now values the smaller gold exploration company at C$19 million ($18.7 million).

According to the new terms of the deal, St. Eugene shareholders will get 0.0789 of a Claude share for every St. Eugene share.

This values St. Eugene’s shares at 16 Canadian cents apiece, a 39 percent premium to its Tuesday closing.

In July, Claude had said it would buy the rest of St. Eugene’s shares for about $14 million, or 0.0601 of its share for every share of St. Eugene.

St. Eugene’s shareholders will now also get 0.25 of a share in a new company formed to transfer its stake in the Tartan Lake gold mine project, and about C$800,000 in cash.

St. Eugene has agreed to pay C$800,000 if the deal falls through.

Shares of Claude closed at C$2 on Tuesday on the Toronto Stock Exchange. St. Eugene stock closed at 11.5 Canadian cents on the Toronto Venture Exchange.

($1 = 1.016 Canadian Dollars)

Reporting by Abhiram Nandakumar in Bangalore; Editing by Supriya Kurane

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below