Lake Shore Gold and Revolution Resources Amend Option Agreement for Mexican Properties
TORONTO, ONTARIO--(Marketwire - July 26, 2012) -Lake Shore Gold Corp. (TSX:LSG)(NYSE MKT:LSG)(NYSE Amex:LSG) ("Lake Shore Gold" or the "Company") today announced that the Company has amended the terms of its option agreement (the "Agreement") to sell up to 100% of the Company's Universo and Montana de Oro land positions in Mexico to Revolution Resources Corp. ("Revolution") (TSX:RV). The revised terms will provide the Company with increased leverage to the success of Revolution's exploration efforts through additional equity ownership and a higher cash payment per ounce of gold or gold equivalent resource established on the land positions in return for a lower initial expenditure requirement. The original terms of the Agreement are outlined in a press release issued by the Company on September 15, 2011.
A summary of the amendments include:
- Revolution will issue to the Company an additional 7,500,000 common shares over 4 years during the first option period to maintain the first option, subject to acceptance of the Toronto Stock Exchange;
- The expenditures required to be incurred during the first option period to earn a 60% interest have been reduced to $15 million from $35 million; and
- The payment required from Revolution in order to exercise the second option to acquire the remaining 40% of either or both of the Universo and Montana de Oro land positions is increased to $30 per ounce of gold or gold equivalent resource in all categories from $20 per ounce.
About Lake Shore Gold
Lake Shore Gold is a gold mining company that is in production and pursuing rapid growth through the successful exploration, development and operation of three wholly owned, multi-million ounce gold complexes in the Timmins Gold Camp. The Company is in commercial production at both the Timmins West and Bell Creek mines, with material being delivered for processing to the Bell Creek Mill. The Company continues to have an active drilling program aimed at supporting current operations and evaluating high-priority exploration targets around the Timmins Camp. The Company's common shares trade on the TSX and NYSE MKT under the symbol LSG.