Golden Share Mining Corporation
TSX VENTURE : GSH

Golden Share Mining Corporation

April 21, 2011 12:37 ET

Golden Share Closes $3,400,000 Financing With Dundee and Libra Funds as Part of On-Going Transaction With Lake Shore Gold Corp.

MONTREAL, QUEBEC--(Marketwire - April 21, 2011) - Golden Share Mining Corporation ("Golden Share" or the "Corporation")(TSX VENTURE:GSH) is pleased to announce the completion of a $3,400,000 private placement.

Under this private placement, the Corporation has issued a total of 17,000,000 common shares ("Shares") at a price of $0.20 per Share and 17,000,000 Share purchase warrants ("Warrant"), each Warrant entitling its holder to purchase one Share at a price of $0.32 per Share at any time during the 24-month period from the closing date.

Philippe Giaro, President and CEO, commented : "We are very pleased to have Dundee Corporation and Libra Advisors, world recognized resource investors, as key participants to our private placement. These two institutions provide firm underlying financial support to develop our key gold project in the underexplored Shebandowan greenstone belt of Northwestern Ontario which includes the Band Ore property currently the object of an on-going transaction with Lake Shore Gold Corp."

The Shebandowan project covers an 18 km of strike length along the northern part of the Shebandowan belt highlighted by two advanced gold targets :

  • Pistol Lake JF's West zone : 150,699 oz Au Inferred Resource (2,857,200 MT @ 1.64 g/t Au at 1.00 g/t Au cut off / NI 43-101 compliant).
  • Band Ore deposit : 251,271 oz Au in historical resources within two principal zones (706,000 tonnes at a grade of 6.86 g/t Au* in the Main zone and 616,000 tonnes at a grade of 4.83 g/t Au* in the #4 zone).

The consolidation of ownership in the Shebandowan belt through the acquisition of Lake Shore Gold' Corp.s Band Ore property by Golden Share provides a tremendous opportunity to develop easily accessible gold resources. The project is located 70 km west of Thunder Bay in Ontario and directly accessible by the Trans-Canada highway. The combination of the Pistol Lake and Band Ore advanced gold targets generates an excellent critical mass to aggressively pursue a resource development strategy with a first targeted objective of 1,000,000 ounces of gold. Additionally, the expanded property provides outstanding blue-sky opportunities through numerous untested geological models and mineralized surface showings.

The Southern part of Northwestern Ontario is increasingly being recognized as an emerging gold province. In the Fort Frances area, Rainy River has so far defined over 5 M oz Au in Indicated and Inferred Resources on their Rainy River Project. In the Atikokan area, Osisko Mining Corporation acquired Brett Resources Inc. following the discovery of the 6.7 M oz Au Hammond Reef deposit. The Shebandowan greenstone belt lies at the eastern end of this prolific province and is the object of intensifying exploration. Foundation Resources Inc. and Alto Ventures reported diamond drilling results of 8.39 g/t Au over 11.0 m and 4.88 g/t Au over 27.3 m on the East Coldstream Deposit located 15 km west of Golden Share's Shebandowan Project. In July 2010, Moss Lake Gold Mines Ltd. provided an upgraded NI 43-101 resource estimate for its + 1 M oz Au Moss Lake deposit.

About Golden Share Mining Corporation

Golden Share Mining Corporation is a Canadian-based mining exploration company whose primary mission is to target, explore and develop gold deposits in Canada. Golden Share is developing a promising portfolio of properties in the greenstone belts of eastern Canada, namely in the Val d'Or-Malatric, Red Lake and Shebandowan areas.

The Company is led by a technically focused management team relying on a strong network of high quality contacts and consultants, including SRK Consulting Canada in Toronto and InnovExplo in Val d'Or. Golden Share is further strengthened by an experienced board of directors and a proven advisory board including successful geologists Roy Corrans and Sethu Raman as well as seasoned financier Anthony Frizelle.

Golden Share's development strategy involves advancing a well balanced portfolio of gold properties in a politically stable environment with a history of gold endowment through systematic exploration, resource definition and acquisitions. Highlights of the current portfolio include :

  • Past producing high grade Au-Ag Berens River Mine to be redeveloped,
  • NI 43-101 compliant resources on Pistol Lake (150,699 oz Au Inferred Resources**),
  • NI 43-101 compliant resources on Forsan (35,000 oz Au Inferred Resources***),
  • New discoveries in the Cadillac break environment.

Golden Share signed a letter of intent dated March 25th, 2011 (the "LOI") to acquire Lake Shore Gold Corp.'s 100% interest in the Band Ore gold property, located in the Shebandowan belt of northwestern Ontario. Under the terms of the LOI, and if the Band Ore transaction (the "Transaction") is successfully completed, Lake Shore Gold Corp. would in return obtain a 19.99% interest in Golden Share, which may be increased to as much as 30% under certain conditions, and thereby become the Company's single largest shareholder.

In connection with this private placement, the Corporation will pay the following commissions (representing 6% of the gross proceeds raised by each finder and a number of agent's warrants equal to 6% Shares subscribed through each finder):

  • BMO Nesbitt Burns : $174,000 and 870,000 agent's warrants,
  • Toll Cross Securities Inc. : $30,000 and 150,000 agent's warrants.

Each agent's warrant will allow its holder to acquire one Share and one Warrant at a price of $0.20 per Unit during the 24-month period from the closing date. All securities to be issued in connection with this private placement are subject to a 4-month minimum hold period.

This private placement is subject to the approval of the TSX Venture Exchange.

*These estimates were executed prior to the introduction of National Instrument 43-101; hence they should be treated as historical data and therefore not be relied upon
** 2,857,200 MT @ 1.64 g/t Au at 1.00 g/t Au cut off
*** 536,500 MT @ 2.03 g/t Au at 1.00 g/t Au cut off

FOR MORE INFORMATION, CONSULT http://www.goldenshare.ca OR OUR FACEBOOK PAGE AT http://www.facebook.com/#!/profile.php?id=100001472712018&v=wall

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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