Business
Disposal of Remaining Lake Sh
Disposal of Remaining Lake Sh.
About this update from Hochschild Mining Plc
[{"type":"text","content":"\n RNS Number : 3230X Hochschild Mining PLC 03 December 2010 \n \n\n \n \n \n______________________________________________________________________ \n \n3 December 2010 \n \nDisposal of remaining 6% stake in Lake Shore Gold \n \nHochschild Mining plc (\"Hochschild\" or \"the Company\") announces today that it has entered into an agreement to dispose of its remaining 6% stake in Lake Shore Gold Corp (\"Lake Shore Gold\") at a net price of C$3.70 per common share (the \"Transaction\"). The Transaction, which is subject to shareholder approval, represents a 37% gain on the average purchase price of C$2.70 per share. Total net proceeds of C$79,701,670.40 million will primarily be used to support the Company's organic growth strategy through investment in its extensive and rapidly expanding exploration pipeline, including funding Azuca and Inmaculada to production. \n \nUnder the terms of the agreement RBC Dominion Securities Inc. will purchase the remaining 21,540,992 common shares of Lake Shore Gold currently held by Hochschild. The Transaction is subject to shareholder approval at an Extraordinary General Meeting, details of which will be provided in a circular to be despatched in due course. On completion of the Transaction, Hochschild will cease to have an interest in Lake Shore Gold.\n \nIgnacio Bustamante, CEO of Hochschild said: \n \n\"Today's transaction represents another important step for Hochschild and supports our ongoing strategy of delivering organic growth through exploration. Since we invested in Lake Shore Gold in 2007, attracted by its significant geological potential, we have realised a very profitable return and we will primarily apply these funds to progress our advanced projects Azuca and Inmaculada as well as to secure and develop early stage, highly value accretive projects which have significant upside potential and a clear path to control.\" \n \nAs at 30 September 2010, Lake Shore Gold's total assets were C$1.1 billion. For the nine months ended 30 September 2010, Lake Shore Gold reported a net loss for the period of C$7.4 million.* \n \nFor further details about Lake Shore Gold and for information about key individuals important to the business, please visit www.lsgold.com. \n \n*Extracted from Lake Shore ...