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

Sprott Deal

[AuandU308]

Its not a surprise that Sprott is working with LSG. John Embry has followed this company @ its Timmins projects for some time. It may sound expensive but if we all recall the buy in from Hochshild some years ago, many looked at that deal in a negative way. We benefited then because we needed the financial backing to explore Timmins west and subsequently buy WTM. The HOC sold out and the stock traded down from $4.37 to current levels ( mostly on the basis of mining low grade) Lets be reasonable here. The company would not enter into these deals if it did not require funds to enhance the milling process to be able to handle an excess of 25k ounces per quarter.

 

Cheap shares now. I am not liking it but if one comes into the stock in the 80-90 cents range, I do believe they will see a decent return in the next 12  months