Lake Shore Gold Corp.

Lake Shore Gold Corp.

January 24, 2006 08:07 ET

Lake Shore Gold Corp. New Issue

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 24, 2006) -

Not for distribution to U.S. news wire services or dissemination in the United States.

Lake Shore Gold Corp. ("Lake Shore" or the "Company")(TSX:LSG) has today entered into an agreement with a syndicate of underwriters led by Raymond James Ltd. and including Haywood Securities Inc., Canaccord Capital Corporation, Octagon Capital Corporation, and Dundee Securities Corporation, under which the underwriters have agreed to buy from Lake Shore $17,500,000 of common shares and flow-through common shares at an issue price of $2.05 per common share and $2.50 per flow-through common share. The gross proceeds from the issue of flow-through common shares will not exceed $5,000,000.

The Company will grant the underwriters an option, exercisable at any time prior to 48 hours before closing, to purchase an additional number of common shares, provided that the total gross proceeds of the issue will not exceed $20,000,000. The Company expects to file a preliminary short form prospectus with the securities regulatory authorities to qualify the common shares and flow-through common shares for distribution. Closing is expected to occur on or about February 13, 2006.

The Offering is being made in the Provinces of British Columbia, Alberta, Manitoba, Ontario, and Quebec, and is subject to the approval of regulatory authorities. The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

Any participation by insiders of the Company in the offering, which participation will be subject to the approval of independent directors of the Company, will be on the same terms as arm's length investors, and shareholdings of insiders in the Company will increase as a result of any such participation.

Contact Information

  • Lake Shore Gold Corp.
    Mr. Brian Booth
    President, CEO & Director
    (604) 669-2525