ONTARIO – Toronto-based Lake Shore Gold has closed a bought deal private placement financing for $15 million. The company issued 12.9 million flow-through common shares at a price of $1.17 each. The shares were bought by a syndicate of underwriteers led by TDSecurities and included National Bank Financial, Haywood Securities, and M Partners.
Lake Shore will use the proceeds for exploration expanses to follow up on recent encouraging drill results at the 144 target area including the 144 Gap zone. The 144 Gap zone is a new zone of gold mineralization identified west of Timmins with minimum dimensions established to date of 100 metres along strike and 250 metres down dip.
Last month the company released assays from the 144 Gap zone that included 7.18 g/t Au over 24.0 metres in hole Hwy-14-52, 5.09 g/t over 24.8 metres in hole Hwy-14-48, and 5.92 g/t over 20.7 metres in hole Hwy-14-53. The mienralization is closely associated with a broad zone of hydrothermal alteration and deformation containing multiple syenite porphyry intrusions, quartz veining, pyrite, scheelite and/or galena and multiple occurrences of visible gold, noted Lake Shore.
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