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

It could be a great combination..

[bossu]

Following the recent proposal by THO to acquire al the outstanding share of LSG at $ 1,71 and the negative reaction by almost every one on this board and probably by the investment community ,this proposal should be turn down for many reasons and one of them is the fact that THO operated in a non friendly environnement as Guatemala with Escobal Mine and possibly in Peru with La Arena and Shahuindo. This combination is a ''paper exchange''and d'ont imply cash and a ''white knight''offer might be in the cards ! So why not an offer from a Canadian company operating 100 kilometers from Lake Shore and operating in a safe jurisdiction would not be made by the low profile KIRLAND GOLD . The actual President and CEO George Ogilvy has done an excellent job in turning over the company and not forgetting Eric Sprott ,non executive chairman renowned and respected in the investment community. Proposal by Kirkland Gold: Kirland Gold to acquire all the outstanding shares of LSG for the ratio of 0.294 share of Kirland Gold.The term of the arrangment implies a consideration of $ 2,00 per LSG share. Closing price on February 12 th: KGI $ 6,81 LSG $ 1,70 Market cap at the close: LSG-463 200 000 x $1,70 =$ 787 MM KGI-114 321 000 x$ 6,81=$778MM After the business combination; KGI 114 321 000 Issued shares by KGI 136 180 000 for a total of 250 501 000 shares and a new market cap of $ 1,705 MM Highlights of the deal : -Intermediate gold Producer -Annual production: KGI 275 000 oz and LSG 176 000 or 451 000 oz (before 5500 TPD mill expansion at Bell Creek) -Reserves ( ,000,000 oz KGI +St Andrew P+P =2,3 M+I =4,7 Inferred 3,9 LSG P+P = 0,77 M+I = 5,08 Inferred =6,29 Combined operation P+P =3,07 M+I= 9.78 Inferred = 10,19 -AISC Under US $ 950 -Mine life over 15 years -Strong balance sheet Exciting exploration potential Question to all Bullboard Member: Would you accept that kind of offer ? Bossu: YES

[dutchmann64]

I like the way you think BOSSU;.....if you look at one of my first posts to this BB I did suggest that that might be a way to go with both of these companies. Certainly something to think about. I would support that move. I am not really interested in any South / Central American exposure. TOO MUCH RISK. I think however that Tony and company have been covertly putting the current deal together

[YakYak3]

The arrangement agreement includes customary provisions including non-solicitation provisions, a right to match any superior proposal and a $37.8-million termination fee payable to Tahoe under certain circumstances. A $20.0-million termination fee is payable to Lake Shore Gold under certain circumstances.

[Currower]

If that was a reality I'd buy my stock back and pay the premium. I'd ask for less from Kirkland Lake. The problem is the poison pill. This Tahoe deal smells like a legal con by people who are supposed to represent us.

[Sumcan2]

I agree, it does not seem like the deal was done for the best interest of all shareholders. I would agree to a merger or a buyout with shares if it was with a company that offered a fair value based on our NAV, our potential reserves, our infrastructure. We are superior to Tahoe in regard to NAV to Share price and reserve potential. We should hear more in the conferance call unless Tony cuts