Canaccord gets with the program on Claude!
Probanly a foreshadowing of write-ups to come.
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Making it official…Claude announced that it will acquire 100% ofSt. Eugene Mining for
.145 per share by way of a friendly
takeover bid, subject to shareholder approval.
CRJ had previously disclosed its intention to take-over SEM in July2011.
The transaction values SEM at approximately $19 million ($17.3adjusted for the SEM shares already held by CRJ), and representsa 28% premium to the 20 day SEM shares VWAP.
The transaction will consolidate CRJ’s ownership of the Amiskjoint venture
gold project (65% owned by CRJ), which hosts 1.57 million ounces ofgold equivalent (M&I + Inferred) at 0.82 g/t AuEq.
Canaccord Genuity Mining Analyst Wendell Zerb believes Amiskremains open for resource expansion and has the potential to host a bulk mineable low grade Au deposit.
Preliminary work suggests recoveries of between 85.2% and 91.7% forgold with the potential for conventional SAG/ball milling withcarbon-in-pulp processing.
CRJ is paying approximately $32/oz of total gold equivalent resource (ounces attributable to SEM).
Zerb currently value CRJ’s 1 million ounce attributable resourceshare at Amisk at $75/oz Au;
overall this transaction is long-termpositive for CRJ as it consolidates a 100% interest in theAmisk gold project at a price below our per ounce estimated projectvalue.
The transaction will include a Spinco to hold
.8 million in
cash and title to the Tartan Lake Gold project near Flin Flon,Manitoba, which hosts 370,000 ounces of gold at 3.9 g/t Au.
CRJ has locked up 20% of the shareholder's vote in favour of thetransaction, which requires 66.6% affirmative vote to beapproved.
The transaction is expected to close before December 31,2011.
Zerb recently added CRJ as a Focus List pick calling it asmallcap
gold producer with short-term potential to benefit from itsportfolio of mineral assets, especially from its 100%-owned
Madsen gold project near Red Lake, Ontario.
Investment positives include promising exploration results from theSantoy Gap and L62 Zone, and increasing production (51,000 oz in2011 to 70,000 oz in 2012/13) following a planned plant expansionto
1,100 tpd, and potentially lower mining costs once the shaftextension at the Seabee mine is complete.
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SUMMARY:
Canaccord Genuity Mining Analyst Wendell Zerb believes Amisk remainsopen for resource expansion and has the potential to host a bulkmineable low grade Au deposit.
CRJ is paying approximately $32/oz of total gold equivalent resource (ounces attributable to SEM).
Zerb currently value CRJ’s 1 million ounce attributable resourceshare at Amisk at $75/oz Au; |
