TME Takeover
Lake Shore cheers Temex shareholder OK for arrangement
2015-09-14 17:26 ET - News Release
Mr. Tony Makuch reports
TEMEX SHAREHOLDERS OVERWHELMINGLY APPROVE ARRANGEMENT AGREEMENT WITH LAKE SHORE GOLD
The arrangement agreement between Lake Shore Gold Corp. and Temex Resources Corp., through which Lake Shore Gold will acquire all outstanding common shares of Temex, received overwhelming support from Temex shareholders at its annual general and special meeting held on Sept. 14, 2015, in Toronto. Of total shares voted, approximately 88 per cent were voted for the agreement (after excluding the votes required to be excluded in accordance with the requirements of Multilateral Instrument 61-101, Protection of Minority Securityholders in Special Transactions).
Following receipt of shareholder approval, it is now anticipated that the agreement will be completed as soon as practicable following receipt of the final order of the Ontario Superior Court of Justice, expected on or about Sept. 16, 2015, and following the satisfaction or waiver of all other conditions precedent to the agreement. Under the agreement, among other terms, holders of Temex shares will receive, in respect of each Temex share that they hold, 0.105 of a common share of Lake Shore Gold. Upon closing of the agreement, Lake Shore Gold will issue approximately 20 million common shares to acquire all issued and outstanding Temex shares, representing less than 5 per cent of the company's current common shares outstanding.
Temex and Goldcorp Canada Ltd. have a joint venture (with Temex as the operator) for the Whitney property, which is located immediately adjacent to Lake Shore Gold's Bell Creek mine and mill. The Whitney property includes the past-producing Hallnor, Broulan Reef and Bonetal mines. Temex has issued resource estimates for Whitney that include 970,000 tonnes at a grade of 7.02 grams per tonne for 218,100 ounces of gold in the measured category, 2.3 million tonnes at a grade of 6.77 grams per tonne for 490,500 ounces of gold in the indicated category and one million tonnes at a grade of 5.34 grams per tonne for 170,700 ounces of gold in the inferred category (1). Temex also owns the Juby gold project located in the Shining Tree area of Ontario. Resource estimates at Juby include 26.6 million tonnes at a grade of 1.28 grams per tonne for 1,090,400 ounces in the indicated category and 96.2 million tonnes at a grade of 0.94 gram per tonne in the inferred category (2).
Tony Makuch, president and chief executive officer of Lake Shore Gold, commented: "We are pleased with the very high level of support that our agreement with Temex has received from Temex shareholders. The acquisition of Temex will provide Lake Shore Gold with valuable upside potential as we look to leverage our existing infrastructure in the Timmins area and continue to grow our company. Temex's Whitney project is very attractive to us, given its close proximity to our Bell Creek milling facility, its large, high-grade resource and the attractive exploration targets included within its property position."
Footnotes
(1) For more information about resources estimates at Whitney, please see Temex's technical report, entitled "Technical Report And Resource Estimate On The Upper Hallnor, C-Zone And Broulan Reef Deposits, Whitney Gold Property, Timmins Area, Ontario, Canada," published on SEDAR on Feb. 27, 2014.
(2) For more information about resource estimates at Juby, please see Temex's technical report, entitled "Technical Report On The Updated Mineral Resource Estimate For The Juby Gold Project, Tyrrell Township, Shining Tree Area, Ontario," published on SEDAR on Feb. 26, 2014.
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