Lake Shore Gold Corp.

Lake Shore Gold Corp.

April 23, 2007 08:00 ET

Lake Shore Completes Due Diligence on Bell Creek Acquisition

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 23, 2007) - Lake Shore Gold Corp. (TSX:LSG) ("Lake Shore" or "the Company") has completed its due diligence on the acquisition by Lake Shore of the Bell Creek mine and mill in Timmins, Ontario from the Porcupine Joint Venture ("the PJV"). Lake Shore President and CEO Brian Booth said: "The due diligence process went well and was completed to our satisfaction. We are now working to complete the terms of the definitive purchase agreement. Once completed, the acquisition will allow Lake Shore to quickly transform itself from a junior exploration company into a gold producer in the prolific Timmins gold mining district."

The acquisition includes the Bell Creek mine property, a hoist, headframe and underground mine infrastructure, a 1,500 tonne per day mill with permitted tailings facilities, plus all surface infrastructure, including office buildings and road and electricity power access easements, and the assumption of all related environmental and rehabilitation liabilities by Lake Shore.

Consideration for the acquisition will consist of $6 million in cash and up to $4 million worth of Lake Shore common shares at a price of $1.51 per share, as well as two million warrants exercisable for a period of two years at $2.41 per share. In addition, Lake Shore will grant the PJV of a royalty equal to 2% of the net smelter returns on the Bell Creek property, subject to underlying royalties.

Timing for closing of the transaction is subject to completion of the definitive agreement and receipt of regulatory and third party approvals.

About Lake Shore

Lake Shore is a mineral exploration company engaged in the acquisition and exploration of mineral properties with prospects for hosting gold deposits. The Company is currently active in eastern Canada and holds a number of mineral resource properties in Ontario, including the Timmins West and Vogel/Schumacher projects, either directly or through option agreements. Lake Shore is a reporting issuer in British Columbia, Alberta, Manitoba, Ontario and Quebec, and trades on the Toronto Stock Exchange under the symbol LSG.

Forward-looking Statements

Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statements.

Contact Information

  • Lake Shore Gold Corp.
    Meghan Brown
    Manager Investor Relations
    (604) 669-3533
    (604) 688-5175 (FAX)
    Lake Shore Gold Corp.
    Brian R. Booth
    President and CEO
    (705) 525-0992
    (705) 525-7701 (FAX)