Business
Lake Shore Gold business comb
Lake Shore Gold business comb.
About this update from Hochschild Mining Plc
[{"type":"text","content":"\n RNS Number : 1518Y Hochschild Mining PLC 27 August 2009 \n \n \n \n\n27 August 2009\n\nLake Shore Gold Corp. and West Timmins agree to business combination \n\n\nThe board of Hochschild Mining plc ('Hochschild') notes the recent announcement by Lake Shore Gold Corp ('Lake Shore Gold') of a definitive business combination agreement under which Lake Shore Gold would acquire all of the outstanding common shares of West Timmins Mining Inc. ('WTM'), and is fully supportive of the transaction. \n\nUnder terms of the agreement, which is subject to shareholder approval, WTM shareholders are to receive 0.73 Lake Shore Gold shares per WTM share, valuing WTM at approximately C$319 million. \nThe transaction will create the new large-scale, wholly-owned Timmins West Gold Mine Complex on the western Timmins mining trend, an extension of the world class Timmins mining trend where approximately 70 million ounces of gold have been produced over the last century. The Timmins West Gold Mine Complex will consist of Lake Shore Gold's adjacent 100%-owned Timmins Mine, with existing mine infrastructure, the Thunder Creek Joint Venture, where high-grade intercepts have been reported within 800 metres of the Timmins shaft, and an extensive land package of adjacent exploration properties, giving Lake Shore Gold a dominant position in this highly prospective area.\n \nHochschild currently owns 40% of Lake Shore Gold. The Board of Lake Shore Gold has committed to look at ways in which Hochschild can return to a 40% shareholding in the enlarged company. Hochschild will evaluate the merits of these and will make further communications if and when appropriate.\n\nEduardo Hochschild, Chairman of Hochschild Mining says: \n\n'As Lake Shore Gold's largest shareholder we are delighted with the proposed business combination and are fully supportive of the transaction. This is a positive step for both companies and accelerates Lake Shore's development as Canada's next mid-tier gold producer. With impressive production targets and an aggressive exploration programme, this synergistic combina...