LAKE SHORE GOLD CORP 6.25 PCT DEBS T.LSG.DB

Ignoring the obvious

[draxter]

LSG needed cash. To get cash they needed to raise money. They had more options than most companies and were lucky to get a good debenture offering (which I see as a vote of confidence) at a fair rate. Other companies have resorted to public offering of shares (at discounts to current share price) which only drove share prices even lower and caused more diluation than this (potential) dilution in the future. They bought time and the ability to complete their near-term projects which will see them starting to make real money soon.

 

I see this as a good news situation considering what the alternatives were.

[Vanchester]

I'm not convinced they needed the cash. The debentures may have been raised for other purposes so don't be too suprised if an aquisition is in the works. The fact that LSG put together this offering is a positive sign in this market climate.   v.

[gilesw]

My dad seems to think that this was issued to stop them from being taken over. The ABG rumor seems to have shaken up the gold equity markets a bit.