ONTARIO — Lake Shore Gold of Toronto has arranged a $85-million private share placement with Hochschild Mining that will see Hochschild increase its interest in Lake Shore to 36% from 32%. Lake Shore has also arranged a non-brokered flow-through financing that will raise net proceeds of $15 million.
"The funds being received from these transactions will support our plans to move all of our projects forward as aggressively as possible," said Lake Shore president and CEO Tony Makuch. "We expect to produce 100,000 ounces of gold in 2010 and then to build production over the following three years to upwards of 350,000 ounces annually."
Over the next 12 months the company will bring the Timmins gold mine to commercial production. It also plans to establish 43-101-compliant resources for the Thunder Creek project and Bell Creek Complex (Bell Creek, Vogel and Schumacher deposits) as well as expand the Bell Creek mill to 3,000 t/d.
Lake Shore's 2010 spending plans include: $29 million for exploration in the Timmins-Thunder Creek area; $30 million for mill expansion; $28 million for advanced underground exploration at Thunder Creek; and $76 million at the Timmins mine and Bell Creek Complex.
Details of the financial arrangements and project plans are available at www.LSGold.com.