TSX:LSG.DB - Post by User
Post by
digger144on Aug 19, 2010 7:37am
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Post# 17364201
Independence is Sweet...
Independence is Sweet...
I would of loved to be a fly on the wall when negotiations were ongoing between Lake Shore and Hochschild, the temperature of the Board Room went up a few degrees, to be sure!
However, in the end it is obvious our Management Team have things under control and as we move forward the future looks very bright!
As per attached and other posts on this Board by other board members Hochschild is facing reality....they are a major shareholder...not a partner!
If you do a more detailed search you will discover that when Hochschild refers to the 35% ownership it involves the outstanding shares of Lake Shore, if you use the fully diluted total their ownerhsip actually drops to about 34%. Not much of a difference...well...actually it is....3.9 million shares more that they would have to buy.
We must wait for the official announcement that the Standstill Agreement with Hochschild will be allowed to expire and a new agreement will not be withstanding.
Free and clear....let us get to work!
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News Release | 19 Aug 2010 | | Stake in LSG to be diluted to 35% | | RNS Number : 3135R Hochschild Mining PLC 19 August 2010 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.
This information is provided by RNS
The company news service from the London Stock Exchange END MSCSFASMUFSSESA
Digger144 | |