TORONTO (miningweekly.com) – LSE-listed Hochschild Mining will not participate in an equity financing announced by Canada's Lake Shore Gold, the firm announced on Thursday.

Hochschild, which produces silver and gold from mines in Latin America, owns 37% of Lake Shore, but its holding will be diluted to about 35% after the share offering.

“Hochschild remains supportive of Lake Shore Gold, however, the board and management team see organic growth through investment in Hochschild's extensive and rapidly expanding exploration pipeline as the company´s key priority,” Hochschild said in a statement.

Lake Shore Gold expects to produce 65 000 oz of gold this year from its Timmins, Ontario, operations.

The company said on Wednesday it will sell 21,5-million shares on a bought-deal basis, up to 2,4-million of which could be issued as flow-through shares.

The common shares will be issued at C$3,50 apiece, and the flow through shares at C$4,20 each.

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