Business
Completion of private placeme
Completion of private placeme.
About this update from Hochschild Mining Plc
[{"type":"text","content":"\n RNS Number : 7349D Hochschild Mining PLC 07 December 2009 \n \n\nCompletion of private placement in Lake Shore Gold \n\nFurther to its announcement on 19 November 2009, Hochschild Mining plc (\"Hochschild\") is pleased to announce that it has completed the transaction to increase its investment in Lake Shore Gold from 32% to approximately 36% (on a fully diluted basis) by way of a private placement. The Company has acquired 19.2 million common shares using existing cash for a total consideration of C$85 million or an average price of C$4.43 per share. \n\nThe transaction demonstrates Hochschild's ability to deliver on its strategy following the US$260 million capital raising undertaken in October 2009, which strengthened the Company's balance sheet and provided the funds for further acquisition opportunities. \n\nSince 2008, Hochschild has invested a total of C$343 million in its 36% stake in Lake Shore Gold at an average price of C$2.68 per share. Hochschild's investment to date reflects its confidence in the significant production potential and long-term growth of Lake Shore Gold, which has a current market capitalisation of approximately C$1.2 billion. \n\nOn 6 November 2009, Lake Shore Gold completed its business combination with WTM creating the new large-scale, wholly-owned Timmins West Gold Mine Complex. Lake Shore Gold has announced a production target of 100,000 ounces of gold in 2010, building production over the following three years to upwards of 350,000 ounces annually over the next several years and accelerating its development as Canada's next mid-tier gold producer. \n\nThe proceeds from the private placement will be used by Lake Shore Gold to advance its key projects which include bringing the Timmins Mine to commercial production over the next 12 months and completing the expansion of the Bell Creek Mill to 3,000 tonnes per day as well as to increase its exploration spend. \n\nEnquiries:\nHochschild Mining plc\nIsabel Lütgendorf &n...