Silver Standard Resources Inc. - SSO.t

Silver Standard Resources Inc. - SSO.t owns the flagship Pirquitas mine in Argentina, one of the largest primary silver mines in the world. In 2015, Pirquitas produced 10.3 million ounces of silver. The company also operates the Marigold mine which produced 207,000 ounces of gold in 2015.

On March 7, 2016 the company released News

Silver Standard Resources Inc. (TSX:SSO) (NASDAQ:SSRI) ("Silver Standard") and Claude Resources Inc. (TSX:CRJ)(OTCQB:CLGRF) ("Claude Resources") are pleased to announce that they have entered into a definitive agreement (the Agreement") whereby Silver Standard will acquire all of the outstanding common shares of Claude Resources pursuant to a plan of arrangement (the "Transaction") to create a high-quality intermediate precious metals producer with assets in the Americas.

Under the terms of the Agreement, all of the Claude Resources issued and outstanding common shares will be exchanged on the basis of 0.185 of a Silver Standard common share and C$0.0001 in cash per Claude Resources share, representing total consideration of C$1.65 per share of Claude Resources based on the value of Silver Standard's common shares as of the close of business on March 4, 2016. This implies an equity valuation of C$337 million for Claude Resources. The consideration represents a premium of approximately 25% based on the 20-day volume weighted average prices of Silver Standard and Claude Resources and 30% to Claude Resources' closing price of C$1.27 per common share on March 4, 2016. 

Upon completion of the Transaction, existing Silver Standard and Claude Resources shareholders will own approximately 68% and 32% of the combined company, respectively.

Transaction Highlights

-- Establishes a high-quality intermediate precious metals producer: Combines high-margin precious metals operations with scale and financial strength in attractive mineral belts and political regions.

-- Significant pro forma mining company: In 2016, the combined company is expected to produce approximately 390,000 gold equivalent ounces at cash costs of approximately $735 per equivalent ounce of gold sold (1).

-- Immediately strengthens financial position: Increased free cash flow generation, enhanced credit quality, and improved financial flexibility with combined cash and marketable securities of $330 million as atDecember 31, 2015.

-- Combines complementary technical skills: Brings safe underground and open pit mining skills together to realize portfolio growth and exploration opportunities.

-- Well positioned to pursue growth: Accelerate exploration of the +19,000 hectare Seabee property while continuing to explore Marigold in Nevada and Pirquitas/Chinchillas properties in Argentina.