RNS Number : 6189U
  Hochschild Mining PLC
  16 May 2008
   

    

 

    16 May 2008 

    Hochschild Mining plc announces approval of the right to increase stake in 
    Lake Shore Gold Corp.

    Hochschild Mining plc ("Hochschild") announces that, following shareholder approval at Lake Shore Gold Corp's ("Lake Shore Gold") Annual
and Special Meeting yesterday, it is able to increase its strategic investment in Lake Shore Gold to 40% (on a fully diluted basis) in
accordance with the agreement announced on 19 February 2008. 

    Hochschild now intends to increase its initial investment from 19.99% to 35% via a private placement to take place by 31 December 2008,
at the predetermined price of C$2.40 per share. In addition, Hochschild is entitled to increase its ownership to 40% (on a fully diluted
basis) through open market purchases. Under the terms of the transaction, Hochschild is subject to a standstill until November 2010 but is
able to make an offer for Lake Shore Gold's outstanding shares at any time in response to an unsolicited offer for Lake Shore Gold from a
third party. 

    This strategic investment allows Hochschild to capture significant exposure to a high grade, long life asset in a mining friendly
jurisdiction. Furthermore, it acknowledges the complementary strengths of Hochschild's underground mining expertise and Lake Shore Gold's
existing asset base and wealth of geological knowledge of the Timmins region.

    ______________________________________________________________________
    Enquiries:
    Hochschild Mining plc
    Wray Barber                                                                              +44 (0)20 7907 2934
    Head of Investor Relations

    Ignacio Rosado                                                                          +511 437 6007
    Chief Financial Officer

    Jose-Augusto Palma                                                                  +511 317 2026
    Senior Adviser, Executive Committee

    Finsbury
    Robin Walker                                                                             +44 (0)20 7251 3801
    Public Relations
    ______________________________________________________________________
    About Hochschild Mining plc:
    Hochschild Mining plc is a leading precious metals company listed on the London Stock Exchange (HOCM.L for Reuters / HOC LN for
Bloomberg) with a primary focus on the exploration, mining, processing and sale of silver and gold. Hochschild currently operates five
underground epithermal vein mines, four located in southern Peru and one in southern Argentina and one open pit mine in northern Mexico.
Hochschild also has one early development project in Mexico and sixteen long-term prospects throughout Latin America. Hochschild has over
forty years experience in the mining of precious metal epithermal vein deposits. For further information please visit
www.hochschildmining.com 

    About Lake Shore Gold 
    Lake Shore is a mineral exploration company focused on the acquisition, exploration and development of mineral properties with prospects
for hosting economic gold deposits in the Canadian Shield in Ontario and Quebec. The Company holds a number of 100% owned and joint ventured
gold properties in Ontario and Quebec, including the Bell Creek Mine and Mill Complex and has commenced sinking a shaft on its 100%-owned
Timmins West gold deposit near Timmins, Ontario. 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.

This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
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