NewsTORONTO, ONTARIO--(Marketwired - July 31, 2015) - Lake Shore Gold Corp. (TSX:LSG)(NYSE MKT:LSG) ("Lake Shore Gold" or the "Company") today announced that it has entered into a binding arrangement agreement (the "Lake Shore Gold Agreement") with Temex Resources Corp. ("Temex"), on the terms proposed by Lake Shore Gold on July 16, 2015 (the "Lake Shore Proposal"), and disclosed in the Company's press release of the same date and also as described in further detail below. The Lake Shore Gold Agreement follows notice that Temex has terminated an arrangement agreement with Oban Mining Corporation ("Oban"). In accordance with the provisions of the arrangement agreement dated June 29, 2015 between Temex and Oban (the "Oban Arrangement Agreement"), Temex is required to pay Oban the agreed termination payment of $691,856 (the "Oban Termination Payment"). Lake Shore Gold has loaned funds to Temex for the purpose of completing the Oban Termination Payment. Under the Lake Shore Gold Agreement, each shareholder of Temex (a "Temex Shareholder") would receive, in exchange for each Temex share held, 0.105 of a common share of Lake Shore Gold, having a value of $0.13 based on the closing price of the Lake Shore Gold shares on the Toronto Stock Exchange (the "TSX") on July 15, 2015. The Lake Shore Gold Agreement is subject to the approval of Temex Shareholders and other customary conditions for similar transactions of this nature. The Lake Shore Gold Agreement contemplates a meeting of Temex Shareholders to consider the Lake Shore Gold Agreement (the "Meeting") to be held on or before September 30, 2015. To be effective, the Lake Shore Gold Agreement must be approved by a resolution passed at the Meeting by (i) at least 66 2/3% of the votes cast by Temex Shareholders, voting as a single class, present in person or by proxy at the Meeting; and (ii) a simple majority of the votes cast by Temex Shareholders, voting as a single class, present in person or by proxy at the Meeting (excluding Temex shares held by certain "interested parties" and "related parties" of any interested parties (as such terms are defined in Multilateral Instrument 61-101 ("MI 61-101")) in accordance with the requirements of MI 61-101). The Lake Shore Gold Agreement is not subject to the approval of the shareholders of Lake Shore Gold. The terms of the Lake Shore Gold Agreement also include a termination fee of approximately $1,000,000 payable to Lake Shore Gold if the Lake Shore Gold Agreement does not proceed in certain circumstances, and interim financing by way of loans from Lake Shore Gold to Temex for certain corporate purposes prior to closing. All loans advanced by Lake Shore Gold to Temex pursuant to the Lake Shore Gold Agreement will be unsecured and bear interest at a rate of 12% per annum. If the Lake Shore Gold Agreement is terminated prior to its effective date, all principal amounts outstanding and any interest payable thereon will become payable by Temex upon ninety days' written notice by Lake Shore Gold. In certain circumstances, Temex will have the option of satisfying the outstanding principal and interest by the issuance of Temex shares (at a deemed conversion price equal to the greater of $0.086 per Temex share and the maximum "Discounted Market Price" permitted under the rules and policies of the TSX Venture Exchange (the "TSXV")) or a combination of Temex shares and cash. Any issuance of Temex shares will be subject to the prior approval of the TSXV. Read more at https://www.stockhouse.com/news/press-releases/2015/07/31/lake-shore-gold-enters-into-arrangement-agreement-with-temex-resources-corp#fIZGSF1CugQ5WOo1.99