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

Just back

[Vanchester]

Just back from holidays and found out about the news. Wow! Lots of positive and negative posts which makes for healthy discussion. I just don't see how this merger can be negative. As a JV, Thunder Creek had no chance of being developed beyond the exploration phase. How was WTM going to raise 40% of the costs to take Thunder Creek to production? LSG had to bite the bullet and get financing from HOC for the Timmins West mine to the tune of 40% dilution. For WTM to go outside and get financing would have diluted their 40% even further, somewhere around 60% of the 40% which equals 24%. Now they get 33% but are at least part of the production from Thunder Creek PLUS production from Timmins West. The same goes for LSG. Without some sort of financing on WTM's part, LSG was stuck and couldn't develope Thunder Creek. They gave up 33% of their production from Timmins West to gain 67% developement of Thunder Creek. A win-win for both companies. 


The $5 party just got a lot closer longs.


v.