Last checked at 19 Aug 2010 07:10
19 August 2010
Hochschild´s investment in Lake Shore Gold to be diluted to 35%
Lake Shore Gold Corp ("Lake Shore Gold"), which is 37% owned by Hochschild Mining plc ("Hochschild" or "the Company") yesterday announced a financing of approximately C$76 million to fund general corporate activities and working capital. Hochschild remains supportive of Lake Shore Gold, however, the Board and management team see organic growth through investment in Hochschild´s extensive and rapidly expanding exploration pipeline as the Company´s key priority. As a result, Hochschild will not be participating in the proposed financing and its current 37% holding in Lake Shore Gold will be diluted to approximately 35%.
Earlier this month, Lake Shore Gold announced that it continues to target mine production of 65,000 ounces of gold (3.9 million silver equivalent ounces) in 2010. A portion of the ore mined may either be toll milled or held in inventory at year end for processing at the beginning of 2011, reflecting the timing for commissioning of the expansion of the Bell Creek mill. The Company continues to anticipate ending 2010 at a monthly production rate of 10,000 ounces from the Bell Creek Mill with commercial production targeted for the fourth quarter. Longer term, the company is working towards building production with the potential to produce over 300,000 ounces of gold annually (18 million silver equivalent ounces) over the coming years.
Enquiries:
Hochschild Mining plc
Isabel Lütgendorf +44 (0)20 79072934
Head of Investor Relations
Finsbury
Faeth Birch +44 (0)20 72513801
Public Relations
About Hochschild Mining plc:
Hochschild Mining plc is a leading precious metals company listed on the London Stock Exchange (HOCM.L / HOC LN) with a primary focus on the exploration, mining, processing and sale of silver and gold. Hochschild has over forty years' experience in the mining of precious metal epithermal vein deposits and currently operates four underground epithermal vein mines, three located in southern Peru, one in southern Argentina and one open pit mine in northern Mexico. Hochschild also has numerous long-term prospects throughout the Americas.