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VANCOUVER, March 21 /CNW/ - Lake Shore Gold Corp. (LSG-TSX) ("Lake Shore"
or "the Company") has today entered into an agreement with a syndicate of
underwriters led by Canaccord Capital Corporation, under which the
underwriters have agreed to buy from Lake Shore 5,000,000 non flow-through
units (the "Units") and 6,000,000 flow-through common shares of the Company
(the "Flow-Through Shares") at an issue price of C$2.00 per Unit and C$2.50
per Flow-Through Share for gross proceeds to the Company of C$25,000,000 (the
"Offering"). Each Unit consists of one common share and one half of one
transferable common share purchase warrant (each whole common share purchase
warrant, a "Warrant"). Each Warrant will entitle the holder thereof to
purchase one common share at a price of C$2.50 expiring 18 months from the
closing of the Offering.
Lake Shore will grant the underwriters an option to purchase additional
Units and Flow Through Shares in any combination of Units and Flow-Through
Shares to raise additional gross proceeds of up to 15% of the Offering
exercisable up to 10 days following the closing of the Offering, to cover
over-allotments, if any. The Company expects to file a preliminary short form
prospectus with the securities regulatory authorities to qualify the Units and
Flow-Through Shares for distribution.
The net proceeds of the Offering will be used for exploration and
development of the Company's mineral projects and general corporate purposes.
Closing is expected on or about April 16, 2007.
The Offering is being made pursuant to a short form prospectus to be
filed in the provinces of British Columbia, Alberta, Manitoba, Ontario and
Québec. 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
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 resource properties in Ontario, including the Timmins West and
Vogel/Schumacher projects, either directly or through option agreements. In
February 2007 Lake Shore announced its agreement to acquire the Bell Creek
mine and mill complex near Timmins, Ontario from the Porcupine Joint Venture.
Lake Shore is a reporting issuer in British Columbia, Alberta, Manitoba,
Ontario and Québec, and trades on the Toronto Stock Exchange under the symbol
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.
For further information:
For further information: Meghan Brown, Manager, Investor Relations, Lake
Shore Gold Corp., (604) 669-3533, e-mail: firstname.lastname@example.org, www.lsgold.com;
Brian R. Booth, President, Lake Shore Gold Corp., Tel. (705) 525-0992, Fax
(705) 525-7701, E-mail: email@example.com, www.lsgold.com