ONTARIO - LAKE SHORE GOLD CORP. has signed a binding letter of agreement with GOLDCORP, manager of the Porcupine Joint Venture (Goldcorp and KINROSS GOLD) to acquire the former Bell Creek gold mine and associated infrastructure near Timmins. The Bell Creek acquisition includes the hoist, headframe and underground mine infrastructure, a 1,500-t/d mill with permitted tailings facilities, plus all surface infrastructure including office buildings, road and hydro access.
The deal is worth $6 million in cash and another $4 million in Lake Shore shares. Lake Shore has the right to increase the cash portion to $7.5 million and reduce the number of shares it will issue. The joint venture partners have agreed to hold their Lake Shore shares for at least 12 months. Lake Shore has also granted options on future share purchase to Goldcorp and Kinross. The joint venture retains a 2% NSR. Lake Shore has 60 days in which to conduct due diligence.
Lake Shore has six other gold properties near Timmins. They are referenced at www.LSGold.com.