Canadian mining company Claude Resources Inc.'s proposed acquisition of St. Eugene Mining Corp. Ltd. will be voted on at a St. Eugene shareholder's meeting Jan. 17., the companies announced Friday.
If approved, the transaction is expected to close by Jan. 24.
Claude currently holds around 9.7 percent of the shares in St. Eugene and will pay around $19 million for the remaining shares, according to documents filed with Canadian Securities Administrators in October. The price represents a 28 percent premium on average price of the share's prices in October.
Shareholders of St. Eugene will receive 0.0789 of a Claude share for each share they own, according to the agreement. Claude shareholders will also receive a 0.25 common share in Spinco, a new subsidiary of St. Eugene, which will control St. Eugene's interests in the Tartan Lake Gold Mine, along with $800,00 in cash.
St. Eugene currently has a 35 percent interest in a joint venture with Claude at the Amisk Gold Project, a 13,900 hectare site in Manitoba. Claude also has operations in Seabee Gold Mine and Madsen Gold Project, according to its Web site.