Last checked at 16 May 2008 07:00
16 May 2008
Hochschild Mining plc announces approval of the right to increase stake in
Lake Shore Gold Corp.
Hochschild Mining plc ("Hochschild") announces that, following shareholder approval at Lake Shore Gold Corp's ("Lake Shore Gold") Annual and Special Meeting yesterday, it is able to increase its strategic investment in Lake Shore Gold to 40% (on a fully diluted basis) in accordance with the agreement announced on 19 February 2008.
Hochschild now intends to increase its initial investment from 19.99% to 35% via a private placement to take place by 31 December 2008, at the predetermined price of C$2.40 per share. In addition, Hochschild is entitled to increase its ownership to 40% (on a fully diluted basis) through open market purchases. Under the terms of the transaction, Hochschild is subject to a standstill until November 2010 but is able to make an offer for Lake Shore Gold's outstanding shares at any time in response to an unsolicited offer for Lake Shore Gold from a third party.
This strategic investment allows Hochschild to capture significant exposure to a high grade, long life asset in a mining friendly jurisdiction. Furthermore, it acknowledges the complementary strengths of Hochschild's underground mining expertise and Lake Shore Gold's existing asset base and wealth of geological knowledge of the Timmins region.
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Enquiries:
Hochschild Mining plc
Wray Barber +44 (0)20 7907 2934
Head of Investor Relations
Ignacio Rosado +511 437 6007
Chief Financial Officer
Jose-Augusto Palma +511 317 2026
Senior Adviser, Executive Committee
Finsbury
Robin Walker +44 (0)20 7251 3801
Public Relations
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About Hochschild Mining plc:
Hochschild Mining plc is a leading precious metals company listed on the London Stock Exchange (HOCM.L for Reuters / HOC LN for Bloomberg) with a primary focus on the exploration, mining, processing and sale of silver and gold. Hochschild currently operates five underground epithermal vein mines, four located in southern Peru and one in southern Argentina and one open pit mine in northern Mexico. Hochschild also has one early development project in Mexico and sixteen long-term prospects throughout Latin America. Hochschild has over forty years experience in the mining of precious metal epithermal vein deposits. For further information please visit www.hochschildmining.com
About Lake Shore Gold
Lake Shore is a mineral exploration company focused on the acquisition, exploration and development of mineral properties with prospects for hosting economic gold deposits in the Canadian Shield in Ontario and Quebec. The Company holds a number of 100% owned and joint ventured gold properties in Ontario and Quebec, including the Bell Creek Mine and Mill Complex and has commenced sinking a shaft on its 100%-owned Timmins West gold deposit near Timmins, Ontario. Lake Shore is a reporting issuer in British Columbia, Alberta, Manitoba, Ontario and Quebec, and trades on the Toronto Stock Exchange under the symbol LSG.