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Claude Resources Inc
Symbol C : CRJ
Shares Issued 173,745,564
Close 2013-01-16 C$ 0.59
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Claude Resources expands debt facilities to $50-million

2013-01-17 11:21 ET - News Release

Mr. Neil McMillan reports

CLAUDE RESOURCES SECURES DEBT FINANCING WITH CANADIAN WESTERN BANK AND CROWN CAPITAL PARTNERS INC.

Claude Resources Inc. has expanded its current debt facilities with its existing bank, Canadian Western Bank, and in addition has come to an agreement with Crown Capital Partners Inc. (CCP) for a debt facility of $25-million.

CWB financing summary

The company has expanded its current debt facilities to $25-million, of which $8.6-million is currently drawn. The current $8.6-million consists of leases, demand loans and a line of credit. The debt expansion is structured as shown in an attached table.

Facility           Previous amount  Current amount

Line of credit       $5,000,000     $10,000,000  
Leases/demand loans  $7,000,000     $10,000,000  
Revolving loan              nil      $5,000,000  

Interest rates are both fixed and floating, and carry a weighted-average rate of approximately 4.5 per cent.

CCP financing summary

The CCP offering consists of a five-year $25-million debt facility, which carries an interest rate of 10 per cent of the outstanding principal, compounded and payable monthly. Principal payments, due to begin in 2014, are payable monthly. The facility includes 5.75 million warrants at a strike price of 70 cents and can be exercisable at any time from the closing of the transaction to five years following the closing of the transaction. The issuance of warrants is subject to approval from each of the Toronto Stock Exchange and the New York Stock Exchange. Closing of the CCP financing is subjective to customary conditions precedent.

         PRINCIPAL REPAYMENT TERMS

Period           Monthly amount  Annual amount

Months 1 to 12           nil              nil
Months 13 to 59     $300,000       $3,600,000
Due at maturity                   $10,900,000

           PREPAYMENT TERMS

Months following closing  Prepayment fee

Months 13 to 24                2%      
Months 25 to 36                1%      
Months 37 to 60                0%      

Neil McMillan, president and chief executive officer, stated: "We are pleased to have both CWB and Crown Capital demonstrating their confidence and support of our business plan. We are satisfied with our blended cost of capital of approximately 8 per cent. It represents the confidence our debt providers have in our ability to manage and retire the debt upon maturity. Our track record over the past 21 years has certainly helped us build a good relationship with CWB and Crown. The company expects to be able to grow the Seabee gold operation production by 10 to 15 per cent compounded annually over the next five years, and we are happy to have CWB and Crown as partners in that growth."

Use of proceeds

The company believes that its new capital structure will advance the company over the long term without penalizing shareholders through major equity financings. The new debt facilities are intended for the retirement of the $9.8-million debenture due in May, 2013, for expansion capital at the Seabee gold operation and for general working capital purposes. The company is confident that it can efficiently service and repay the debt facilities through growing operating cash flows from the Seabee gold operation.

About Crown Capital Partners

Crown Capital Partners is a leading provider of growth capital to middle-market companies throughout Canada. Crown Capital Partners focuses on providing specialized financing solutions including structured equity, subordinated term and bridge loans for acquisitions, management buyouts, growth financings, and recapitalizations.

We seek Safe Harbor.

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