Business
Increased stake in Lake Shore
Increased stake in Lake Shore.
About this update from Hochschild Mining Plc
[{"type":"text","content":"\n RNS Number : 2593X Hochschild Mining PLC 23 June 2008 \n \n \n\n\n\n________________________________________________________________________\n\n23 June 2008 \n\nIncreased stake in Lake Shore Gold to 40% \n \nHochschild Mining plc ('Hochschild' or 'Group') is pleased to announce that it has increased its investment in Lake Shore Gold Corp. (TSX:LSG) ('Lake Shore Gold') to 40% (on a fully diluted basis) through a privately negotiated transaction with Aurora Platinum Corp.('Aurora'), a wholly owned subsidiary of FNX Mining Company Inc. \n\nHochschild has reached an agreement with Aurora pursuant to which it will acquire 11.8 million common shares of Lake Shore Gold for a total cash consideration of C$21.4 million or C$1.82 per share. The agreement is expected to close on 26 June 2008. The transaction will not take place through a stock exchange or other market. Following closing, Hochschild will hold 73,139,210 shares or 40% (on a fully diluted basis) of Lake Shore Gold. \n\nUnder the terms of Hochschild's Strategic Alliance Agreement with Lake Shore Gold, announced on 19 February 2008, Hochschild has the right to increase its stake in Lake Shore Gold to 40% on a fully diluted basis. Hochschild is pleased to have reached this milestone so quickly. As a result, Hochschild will have the right to increase its existing Board representation in proportion to its increased ownership interest. Hochschild's rights under the Strategic Alliance Agreement also include a right of first offer over any new property in Canada that Lake Shore Gold decides to joint venture and pre-emptive rights in connection with future issuances of securities by Lake Shore Gold. \n\nThe Group has spent a total of C$165.6 million to acquire a 40% (fully-diluted) stake in Lake Shore Gold, reflecting the Group's confidence in the significant production potential and long-term growth of Lake Shore Gold. Lake Shore Gold's management team anticipate...