HOC Hochschild Mining Plc

 

TIDMHOC 
 
RNS Number : 3415N 
Hochschild Mining PLC 
13 February 2009 
 

 
 
13 February 2009 
 
 
Hochschild Mining confirms participation in Lake Shore Gold financing 
 
 
Hochschild Mining plc ("Hochschild") is pleased to announce its participation in 
the financing of its strategic alliance partner, Lake Shore Gold Corp. ("Lake 
Shore Gold"). Lake Shore Gold has entered into a bought-deal financing agreement 
with a syndicate of underwriters to raise approximately C$60 million. Hochschild 
has agreed to a commitment of approximately C$22 million and, in addition, has 
the right to participate in its pro-rata share of any over 
allotments. Hochschild's commitment will be funded entirely from existing 
cash. The transaction is expected to close in early March 2009 and is subject to 
TSX and other customary regulatory approvals. 
 
 
Proceeds from the financing, which is fully underwritten, will be used for the 
advancement of Lake Shore Gold's mineral projects, including the Timmins 
project, and also for other exploration and general corporate purposes. On 
completion of the transaction, Hochschild's ownership of Lake Shore Gold will be 
maintained at 40%. 
 
 
Miguel Arambur�, CEO of Hochschild Mining plc, commented: 
 
 
"We continue to demonstrate our commitment to our partners by 
contributing approximately C$22 million in this fully underwritten financing 
arrangement. We are firm supporters of Lake Shore Gold, which is due to produce 
up to 30 koz ounces of gold in 2009, and remain extremely optimistic about the 
company's growth profile." 
 
 
As at 30 September 2008, Lake Shore Gold's total assets were C$274,150,025. For 
the nine months ended 30 September 2008, Lake Shore Gold reported a net loss for 
the period of C$3,202,637.* 
 
 
For further details about Lake Shore Gold and for information about key 
individuals important to the business, please visit www.lsgold.com. 
 
 
*Extracted from Lake Shore Gold's unaudited Third Quarter Report 2008, prepared 
in accordance with Canadian GAAP. 
_____________________________________________________________________ 
 
 
Enquiries: 
 
 
Hochschild Mining plc 
Isabel L�tgendorf     + 44 (0)20 7907 2934 
Head of Investor Relations 
 
 
Ignacio Rosado+ 511 437 6007 
Chief Financial Officer 
 
 
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 
has over forty years experience in the mining of precious metal epithermal vein 
deposits and currently operates five underground epithermal vein mines, four 
located in southern Peru, one in southern Argentina and one open pit mine in 
northern Mexico. Hochschild also has over sixteen long-term prospects throughout 
the Americas. 
 
 
About Lake Shore: 
 
 Lake Shore Gold Corp. is a mineral development and 
exploration company that is moving towards gold production through its 
100%-owned Timmins project, which has a 1.2 million ounce reserve (uncut) and 
where the Company is sinking a shaft and driving a ramp to access shallow 
mineralization. The Company has also refurbished its wholly owned Bell Creek 
mill, which it acquired in December 2007, and has a number of prospective 
exploration properties in Northern Ontario and Quebec. Lake Shore Gold's common 
shares trade on the Toronto Stock Exchange under the symbol LSG. 
 
 
 
 
 
 
Certain statements in this announcement are or may be forward looking statements 
regarding Hochschild Mining plc's financial position and results, business 
strategy, production, plans and objectives. By their nature, all forward-looking 
statements involve risk and uncertainty because they relate to future events and 
circumstances which are beyond the Group's control. As a result, the Group's 
actual future financial condition, performance and results may differ materially 
from the plans, goals and expectations set forth in such forward-looking 
statements. Except as required by applicable law or regulation, the Group does 
not undertake any obligation to update or change any forward-looking statements 
contained in this announcement or any other forward-looking statement it may 
make. 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 MSCGGGMZRFRGLZM 
 

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