JOHANNESBURG (miningweekly.com) – Canada-based gold producer Lake Shore Gold on Wednesday announced that it expected to generate gross proceeds of about $15-million through a brokered private placement of 12.9-million flow-through common shares to be offered on a bought deal basis at $1.17 apiece.
The funds raised from the issuance of the flow-through shares would be used for general exploration expenditures, including investments to follow up on recent encouraging drill results at the company's 144 Gap zone.
This new zone of gold mineralisation identified west of Timmins, Ontario, had to date established minimum dimensions of 100 m along strike and 250 m down dip. The expenditures to be funded from the flow-through shares would constitute Canadian exploration expenditures as defined in the Income Tax Act.
Lake Shore noted that the flow-through shares issued with respect to this equity offering would be subject to a four-month hold period in accordance with applicable Canadian securities laws. The closing of the equity offering was expected to occur on or about December 3, 2014, and was subject to receipt of all necessary regulatory approvals, including that of the TSX.