Gold futures, per the COMEX August contract, climbed to yet another new all-time high on Thursday as the yellow metal continued its record run northward.
Gold futures rallied to $1,594.90, a new intra-day high, in morning trading, before paring their gains and settling at a new closing high of $1,589.30 per ounce.
COMEX silver futures advanced as well, with the September contract finishing up $0.54, or 1.4%, to $36.89 per ounce. Early this morning, silver reached an intra-day high of $39.395 per ounce, its highest level since May 4.
Strength in precious metals came despite comments from Fed Chairman Ben Bernanke that the central bank does not intend to launch QE3 in the near term.
Claude Resources Confirms Approach to St. Eugene Mining
CLAUDE RESOURCES (CRJ.TSX, CGR: AMEX) announced that it has approached the Board of Directors of St. Eugene Mining Corporation (SEM.TSXV) with a proposal to enter into a letter of intent for a share exchange transaction for 100% of St. Eugene at a significant premium to its trading price. St. Eugene is a gold exploration company whose main assets include its 35% joint venture interest in the Amisk Gold Project in Saskatchewan (65% owned by Claude) and its 100% owned Tartan Lake Gold project in the Flin Flon area, Manitoba.
Claude noted that as the largest shareholder of St. Eugene (with 9.7% of the basic shares outstanding), Claude is disappointed by the strategic direction of St. Eugene evidenced by the recent announcement, and subsequent suspension, of a highly dilutive private placement with Churchill Natural Resource Partners L.P. that would have resulted in loss of control of St. Eugene at a discount to its trading price. Full Claude Resources Press Release.
Claude noted that as the largest shareholder of St. Eugene (with 9.7% of the basic shares outstanding), Claude is disappointed by the strategic direction of St. Eugene evidenced by the recent announcement, and subsequent suspension, of a highly dilutive private placement with Churchill Natural Resource Partners L.P. that would have resulted in loss of control of St. Eugene at a discount to its trading price. Full Claude Resources Press Release.
Highlights:
* Claude Resources felt it necessary to make its position public given that St. Eugene’s Board of Directors has not positively responded to Claude’s proposal in the timeframe requested.
* The proposal Claude presented to St. Eugene’s Board of Directors was to enter into a letter of intent for a share exchange transaction at a fixed exchange ratio of 0.0601 of a Claude common share for each St. Eugene common share through a friendly transaction. The implied value of the Proposal is approximately C$0.125 per St. Eugene share.
* Claude believes that the Proposal would be particularly compelling for all St. Eugene’s security holders and provide them with immediate exposure to the strong current gold price environment through Claude’s growing production and outstanding exploration upside on its three major projects.
CLAUDE VS. S&P500, XAU
Catherine Gignac, Analyst at Northland Securities:
“Claude is well financed to advance its 2011 development and exploration plans. We look to multiple value creation opportunities in 2011 from the Seabee, Madsen and Amisk assets to drive Claude's shares higher. Catalysts include infrastructure improvements and expansions, mine life extension, and resource growth at exploration properties."
INTERACTIVE CLAUDE RESOURCES CHART
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