Business
Participation in Lake Shore f
Participation in Lake Shore f.
About this update from Hochschild Mining Plc
[{"type":"text","content":"\n RNS Number : 3415N Hochschild Mining PLC 13 February 2009 \n \n\n13 February 2009 \n\nHochschild Mining confirms participation in Lake Shore Gold financing \n\nHochschild Mining plc ('Hochschild') is pleased to announce its participation in the financing of its strategic alliance partner, Lake Shore Gold Corp. ('Lake Shore Gold'). Lake Shore Gold has entered into a bought-deal financing agreement with a syndicate of underwriters to raise approximately C$60 million. Hochschild has agreed to a commitment of approximately C$22 million and, in addition, has the right to participate in its pro-rata share of any over allotments. Hochschild's commitment will be funded entirely from existing cash. The transaction is expected to close in early March 2009 and is subject to TSX and other customary regulatory approvals.\n\nProceeds from the financing, which is fully underwritten, will be used for the advancement of Lake Shore Gold's mineral projects, including the Timmins project, and also for other exploration and general corporate purposes. On completion of the transaction, Hochschild's ownership of Lake Shore Gold will be maintained at 40%. \n\nMiguel Aramburú, CEO of Hochschild Mining plc, commented: \n\n'We continue to demonstrate our commitment to our partners by contributing approximately C$22 million in this fully underwritten financing arrangement. We are firm supporters of Lake Shore Gold, which is due to produce up to 30 koz ounces of gold in 2009, and remain extremely optimistic about the company's growth profile.'\n\nAs at 30 September 2008, Lake Shore Gold's total assets were C$274,150,025. For the nine months ended 30 September 2008, Lake Shore Gold reported a net loss for the period of C$3,202,637.*\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 Gold's unaudited Third Quarter Report 2008, prepar...