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Claude Resources (TSX:CRJ) said Thursday it has agreed to sell its Madsen Gold Project in Red Lake, Ontario, Canada to Laurentian Goldfields (TSX:CRJ).
Claude Resources (TSX:CRJ) said Thursday it has agreed to sell its Madsen Gold Project in Red Lake, Ontario, Canada to Laurentian Goldfields (TSX:CRJ).
Under the terms of the agreement, Claude will receive cash and equity from Laurentian, consisting of CDN$3.75 million cash upon closing of the transaction, $2.5 million cash three months following the closing of the transaction, $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.
The 4,000+-acre property is located in the Red Lake gold camp of Northwestern Ontario and hosts two former gold producers including the Madsen Gold Mine which had previous gold production of 2.4 million ounces.
As quoted in the press release:
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.”