In Commercial Production - Achieving Rapid Growth
Emerging Mid-Tier Gold Company - Timmins
Message: Revises C$60 Million Financing
| February 13, 2009 |
| Lake Shore Gold Revises C$60 Million Financing |
| TORONTO, ONTARIO--(Marketwire - Feb. 13, 2009) - NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES Lake Shore Gold Corp. (TSX:LSG) ("Lake Shore Gold" or "the Company") has revised the terms of its previously announced bought-deal financing agreement with a syndicate of underwriters co-led by Scotia Capital Inc. and Haywood Securities Inc. and including Wellington West Capital Markets Inc., Raymond James Ltd., TD Securities Inc. and Sandfire Securities Inc. (collectively, the "Underwriters"), to issue approximately C$60,000,000 in a combination of Flow-Through common shares ("Flow-Through Shares") at C$2.00 per Flow-Through Share and Common Shares ("Common Shares") at C$1.55 per Common Share. The Offering is subject to TSX and other customary regulatory approvals. Anthony (Tony) Makuch, President and CEO of Lake Shore Gold, commented: "Today's financing ensures that we will have the financial strength to advance our Timmins projects and exploration properties while maintaining a strong balance sheet, an important advantage in the current market environment. With the Canadian dollar gold price hovering close to $1,200 per ounce and development and operating costs declining due to the weaker economy, our goal is to advance our projects as rapidly as possible." Lake Shore Gold has granted the underwriters an option to purchase additional Flow-Through Shares and Common Shares in any combination of Flow-Through Shares and Common Shares to raise additional gross proceeds of up to 15% of the Offering exercisable within 30 days following the closing of the Offering, to cover over-allotments, if any. The maximum amount raised from the issue of Flow-Through Shares will be C$20,000,000. The Company expects to file a preliminary short form prospectus with the securities regulatory authorities to qualify the Flow-Through Shares and Common Shares for distribution. Hochschild Mining plc. ("Hochschild") has agreed to subscribe for such number of Common Shares from the Offering that represent 40% of the aggregate Flow-Through Shares and Common Shares issued in the offering, including the exercise of any over-allotments. Mr. Makuch added: "We want to express our appreciation to all investors for participating in the financing and to Hochschild for its ongoing support of Lake Shore Gold. We regard Hochschild's decision to continue to participate as a strong endorsement of the quality of our assets and the progress we are making. Our Timmins project ramp and shaft are advancing on schedule and on budget; the Bell Creek mill has been refurbished, with the first gold poured at the end of December; and we have achieved significant exploration success at properties like Bell Creek, Thunder Creek and our Casa Berardi optioned property." The funds raised from the issuance of the Flow-Through Shares shall be used for general exploration expenditures which will constitute Canadian Exploration Expenditures ("CEE") as defined in the Income Tax Act. The funds raised from the issuance of the Common Shares will be used for the advancement of the Company's mineral projects and for general corporate purposes. Closing is expected on or about March 5, 2009. The Offering is being made pursuant to a short form prospectus to be filed in British Columbia, Alberta, Manitoba, Ontario and Quebec. The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful. About Lake Shore Lake Shore Gold Corp. is a mineral development and exploration company that is moving towards gold production through its 100%-owned Timmins project, which has a 1.2 million ounce reserve (uncut) and where the Company is sinking a shaft and driving a ramp to access shallow mineralization. The Company has also refurbished its wholly owned Bell Creek mill, which it acquired in December 2007, and has a number of prospective exploration properties in Northern Ontario and Quebec. Lake Shore Gold's common shares trade on the Toronto Stock Exchange under the symbol LSG. |
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