In Commercial Production - Achieving Rapid Growth
Emerging Mid-Tier Gold Company - Timmins
Message: Announces Closing of Bought Deal Offering
| March 5, 2009 |
| Lake Shore Gold Announces Closing of Bought Deal Offering |
| TORONTO, ONTARIO--(Marketwire - March 5, 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") today announced the successful closing of the previously announced bought deal offering (the "Offering") of common shares and flow-through common shares of the Company. The Company has sold to 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"), 30,615,871 common shares (the "Common Shares") at $1.55 per Common Share and 6,616,185 flow-through common shares (the "Flow-Through Shares") at $2.00 per Flow-Through Share for gross proceeds of $60,686,970. Anthony (Tony) Makuch, President and CEO of Lake Shore Gold, commented: "We are very pleased to have completed the Offering, with the proceeds received providing the financial flexibility to continue moving forward with our key development and exploration projects, while maintaining a strong balance sheet. We want to extend our thanks to the investors who participated in the Offering, to our underwriters and to all others who contributed to the successful completion of this financing." The funds raised from the Offering will be used for underground rehab and development work at the Company's 100% owned Bell Creek mine and Vogel properties in support of an advanced underground exploration program, exploration expenditures at the Timmins, Thunder Creek, Casa Berardi and other exploration properties, and for general corporate purposes. The entire gross proceeds from the issuance of the Flow-Through Shares will be spent on "Canadian Exploration Expenditures" ("CEE") as defined in the Income Tax Act. As part of the Offering, Hochschild Mining plc. ("Hochschild") purchased 14,892,822 common shares, representing 40% of the aggregate shares issued through the financing. Hochschild's interest in the Company remains at 40% on a fully diluted basis. |
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