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

Still Pi$$ed, but I'm all out

[MetalsGuy]

For me one of the big issues is trust. Do I believe that the present directors of LSG have its shareholders best interests at heart? What are they getting or will they be getting out of this deal: shares, options, bonuses? Anybody know? A $37.8 million termination fee! What were they thinking??? Do they want to insure that this deal goes through? Eliminate other offers?

Do I want to invest in THO knowing the political situation in Guatemala? Anybody want more risk?

I invested in LSG because it was a Canadian gold company with no political issues, and a good expanding resource base. I feel that being a long term shareholder, the benefits of the 144 gap deposit and other future discoveries, should have gone to us, rather than being shared with Tahoe. And the sharing is not equal: they will own 76%, we will own 24%, of the new company! As an investor, this is not why I purchased LSG.

Yes, the share price may appreciate, but with increased political risk. And who is to know where LSG would be trading at now, with the 144 results and the increase in gold price? $1.50? 1.60? Needless to say, I feel that the buyout premium was very small compared to what I would have normally expected for a deal such as this.

I've sold the rest of my LSG holdings this morning.

Good Luck To All!

[chapulin]

I hear your pain Metalsguy. Can anyone confirm that if deal is voted down, do we still pay cancellation fee? Also if another offer is presented by another suitor, we have to also pay the termination fee?

[MetalsGuy]

We don't have to pay any cancellation fees if deal is voted down, we pay only if we decide to go with another offer.

[silver300]

Does that also apply if Kirkland Lake or someone else makes a hostile bid?

[Sumcan2]

If the BOD accepts the competting offer (hostile or friendly) and says goodbye to Tahoe, then I would think  the termination fee would have to be paid.

[domdom03]

when oban made a offer for temex and lakeshore made a much surperior offer, i believe lakeshore paid the penalty to oban. please correct me if im wrong

[SKRiderFan]

Hey Dom, the break-up fee was 691k which LSG lend to oban. This was a reasonable amount not the assine # that tony sold us out for

[silver300]

Under a hostile bid situation the BOD does not accept the bid, they fight it. I wonder if the breakup fee is not payable under such a situation.

[peep2]

I would think metalsguy is correct that there is no penalty fee if the non management shareholders vote the deal down. Management is saying by announcing the deal that they are definitively for it and from their point of view it is a done deal, and by saying so trying to sway the mass and file shareholders that it is a good deal and to vote yeah for it.  But contrary to the management's