LAPORTE, Ind., June 25, 2014 (GLOBE NEWSWIRE) -- Timothy Stabosz, at 5.2% ownership, the largest shareholder of Canadian based Claude Resources, Inc. (OTCQB:CLGRF) (TSX:CRJ), today announced the filing of Schedule 13D with the U.S. Securities and Exchange Commission. The filing can be accessed at the following web link:
http://www.sec.gov/Archives/edgar/data/1162893/000116289314000005/clgrf13dinitial.txt
In the filing, Stabosz notes the company's covenant waiver with its lender, Crown Capital, requiring Claude to explore a potential sale, and complete a strategic review process, by July 31st. Stabosz expresses his support for a sale of Claude, assuming a fair price is obtained for the shareholders, and that the company is "fully shopped."
In addition, Stabosz requested that the board of directors immediately add one or more major outside shareholder representatives to the Claude board, 1) to assist in the evaluation of strategic alternatives, and also 2) to ensure that the lengthy record of value destruction, and massive dilution, under the former CEO, can be properly relegated to Claude's past, and not be any part of its future.
Stabosz stated, "As a dyed in the wool value investor, I am excited by the prospects Claude offers to maximize shareholder value, through a turnaround in the company's operations, through development of the high grade Santoy Gap deposit, and/or through a sale of the company. It is necessary and proper for our company's board to be mindful of the 18 year record of value destruction, under the former CEO. In order to establish to the investment community that a 'new Claude' is firmly in place, it is critical for the board to welcome one or more representatives from the outside shareholder base. This is especially true, considering the extraordinary pain that Claude's long term shareholders have experienced.
"As the largest shareholder of Claude, I have offered to serve on the board, and believe that such service would be a welcome reassurance and comfort to my fellow shareholders. I also believe my serving would likely broaden Claude's shareholder base, and increase its reputation for open, inclusionary, and expansive corporate governance. My relationship with Claude's management is solid, my affection for the company runs deep, and I have become a student of its history...ever sensitive to the important constituencies whose lives the company touches. More importantly, the votes cast by me at the recent annual shareholder meeting represented more than 30% of the total votes cast, justifying my being provided a seat at the table, as a representative of the entire outside shareholder base.
"It is my hope that a new day may very well be dawning for Claude. I believe the company is in an enviable position, at this time, because of the recent successful capital raises, which, while ill-timed, represent management's concerted and diligent efforts to do the right thing, and avoid dilution. I commend current and former management for having the fortitude to see this difficult and challenging process through. As we sit here today, Santoy Gap is ahead of schedule, and rapidly coming to fruition, while the company has significantly reduced its per ounce cost of production, making Claude an increasingly attractive 'tuck in' candidate for a potential acquiror. That having been said, if the company does not receive expressions of interest that reflect the turnaround the company has been realizing, and the underlying value of the Seabee mine, I believe the company should retain the option of remaining independent, seeking to increase shareholder value through improved performance," Stabosz concluded.
Timothy Stabosz is a "deep value" investor, specializing in low priced, microcap stocks selling for steep discounts to traditional valuation metrics, such as price to book, price to sales, etc. He employs Graham and Dodd, among other regimens, in his research.