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

Convertible Debenture

[Anonyminus]

Hi All...I have been following this board for a couple years now, and have really appreciated everyones insight over that time. I first bought in up around $4, and have now averaged down to about $1. It is nice to be in the green now.

Can anyone provide some insight to how the debentures work. Right now the long term debt of the comapany is basically the payment of these debebtures. I dont really understand how these work, and how the company pays that money back, or what happens if they are converted to stock if anything. I have tried google many times but I am finding the result to still be quite confusing. Any insight would be much appreciated.

Thanks

[TraderRookie]

Very Nice Question...We would really like to understand this... Can any expert shed some light on this? I am a new investor and LSG is the first share i bought..

[goldhappy]

hi geoffs...you are a pretty decent finacial person. How about giving us your take on this question about debentures. My take may be off base. The way I understand it is LSG got a loan with interest to be paid??...based on was it a $1.40 share price. LSG has a time frame to pay back the loan or the loan can be converted to shares?? The actual agreement should be in the governement reporting files.

[ub40eh]

Good Morning... It's quite the read but here you go.......Each Debenture will be convertible into common shares of the Corporation (“Common Shares”) at the option of the holder of the Debenture at any time prior to the close of business on the earlier of (i) the business day immediately preceding the Maturity Date and (ii) the business day immediately preceding the date specified by the

[Anonyminus]

Thanks ub40eh...So I am no expert when reading official transcripts like that, but my interpretation in plain and simple wording is; 1. as of the specific date, if you hold the debentures, you can choose to convert them to shares which would eliminate an equivalent amount of the debt that LSG owes, but also diluting the share count as well. LSG will still owe the interest on said amout as of the

[goldhappy]

Definition of 'Convertible Debenture' A type of loan issued by a company that can be converted into stock by the holder and, under certain circumstances, the issuer of the bond. By adding the convertibility option the issuer pays a lower interest rate on the loan compared to if there was no option to convert. These instruments are used by companies to obtain the capital they need to

[bigdaddycash]

With LSG generating excess cash and the limited (economic) prepayment privileges on both the gold linked note and Sprott line perhaps it makes sense to buy back some of the debenture on the open market – especially on gold down days like today?  Not only would this reduce interest expense but it would prevent future dilution.  Anyone ever talk to LSG about this possibility?  Beats

[goldhappy]

Very good idea about the debentures. Another point while reading other blogs bigdaddy is it is the same ole same ole ... blogs appear....sell or not....Well remember back about 25 cents...would you bail? Remember 50 cents would you bail? Yes even at a buck would you bail? At a 1.4 would you bail ? And now at 1.23 would you bail today. I think the answer is in the history of my questions. If one

[bigdaddycash]

gh, when the stock was $0.25 it was not pleasant for myself but my approach was  to weigh the upside against the downside and it was simple to stay in the stock.  still is.  LSG has one of the best cash flow to price ratios of all the gold producers and it is still improving.  the explorartion potential is pretty fine too.  so, i coould take a profit liek you but will