Lake Shore Gold Corp.

Lake Shore Gold Corp.

April 16, 2007 08:44 ET

Lake Shore Gold Corp. Completes $28.75 Million Bought Deal Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 16, 2007) -

This news release, required by applicable Canadian laws, is not for distribution to U.S. newswire services or for dissemination in the U.S.

Lake Shore Gold Corp. (TSX:LSG) ("Lake Shore" or "the Company") has completed the $28.75 million bought deal financing announced on March 21, 2007, underwritten by a syndicate led by Canaccord Capital Corporation, and including Haywood Securities Inc. and Raymond James Ltd.

The financing consisted of 6,875,000 units (the "Units") and 6,000,000 flow-through common shares (the "Flow-Through Shares") at an issue price of $2.00 per Unit and $2.50 per Flow-Through Share, for gross proceeds of $28.75 million. Each Unit consisted of one common share plus one half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant entitles the holder to purchase one common share at a price of $2.50 expiring in 18 months.

Net proceeds will be used for exploration of the Company's Timmins West project, the acquisition of the Bell Creek mine and mill complex near Timmins, Ontario from the Porcupine Joint Venture and general working capital. Approximately $12 million will be allocated toward exploration on the Timmins West property, of which approximately $9.5 million will be reserved for preliminary work on the advanced exploration program pending receipt of the advanced exploration permit and completion of a favourable pre-feasibility study. Lake Shore has the option to pay up to $7.5 million in cash for the Bell Creek acquisition, as announced in February 2007, which will be paid from the proceeds.

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 exploration properties in Ontario, including the Timmins West, Vogel and 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
    (705) 525-0992
    (705) 525-7701 (FAX)