HOC Hochschild Mining Plc

 

TIDMHOC 
 
RNS Number : 1518Y 
Hochschild Mining PLC 
27 August 2009 
 

 
 
 
 
27 August 2009 
 
 
Lake Shore Gold Corp. and West Timmins agree to business combination 
 
 
 
 
The board of Hochschild Mining plc ("Hochschild") notes the recent announcement 
by Lake Shore Gold Corp ("Lake Shore Gold") of a definitive business 
combination agreement under which Lake Shore Gold would acquire all of the 
outstanding common shares of West Timmins Mining Inc. ("WTM"), and is fully 
supportive of the transaction. 
 
 
Under terms of the agreement, which is subject to shareholder approval, WTM 
shareholders are to receive 0.73 Lake Shore Gold shares per WTM share, valuing 
WTM at approximately C$319 million. 
The transaction will create the new large-scale, wholly-owned Timmins West Gold 
Mine Complex on the western Timmins mining trend, an extension of the world 
class Timmins mining trend where approximately 70 million ounces of gold have 
been produced over the last century. The Timmins West Gold Mine Complex will 
consist of Lake Shore Gold's adjacent 100%-owned Timmins Mine, with existing 
mine infrastructure, the Thunder Creek Joint Venture, where high-grade 
intercepts have been reported within 800 metres of the Timmins shaft, and an 
extensive land package of adjacent exploration properties, giving Lake Shore 
Gold a dominant position in this highly prospective area. 
Hochschild currently owns 40% of Lake Shore Gold. The Board of Lake Shore Gold 
has committed to look at ways in which Hochschild can return to a 40% 
shareholding in the enlarged company. Hochschild will evaluate the merits of 
these and will make further communications if and when appropriate. 
 
 Eduardo Hochschild, Chairman of Hochschild Mining says: 
 
 
"As Lake Shore Gold's largest shareholder we are delighted with the proposed 
business combination and are fully supportive of the transaction. This is a 
positive step for both companies and accelerates Lake Shore's development as 
Canada's next mid-tier gold producer. With impressive production targets and an 
aggressive exploration programme, this synergistic combination will create a 
wholly-owned mining complex with the potential for large-scale, long life 
operations." 
 
 
 
 
Enquiries: 
 
 
Hochschild Mining plc 
Isabel Lütgendorf    + 44 (0)20 7907 2934 
Head of Investor Relations 
 
 
 
 
Finsbury 
Robin Walker                   +44 (0)20 7251 3801 
Public Relations 
 
 
 
 
- ends - 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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