UPDATE 1-Lake Shore Gold to raise up to C$77 mln via share sale

* To sell 21.5 mln shares at C$3.50 apiece

* Proceeds to be used to expand ops at Ontario mines

Aug 18 (Reuters) - Canadian gold miner Lake Shore Gold Corp (LSG.TO) said it would raise up to C$76.9 million in a bought deal and use the proceeds to expand operations at its Ontario mines.

The company said it will sell 21.5 million shares at C$3.50 apiece -- a 7 percent discount to its Wednesday close -- to a syndicate of underwriters led by BMO Capital Markets to raise C$75.3 million.

Lake Shore Gold also said the underwriters can opt to buy up to 2.4 million of the shares as flow-through common shares at a price of C$4.20 apiece, taking the total proceeds to C$76.9 million.

The proceeds will be used to fund the ramp up of Timmins mine, exploration at Thunder Creek and Bell Creek, and expansion of Bell Creek mill, Lake Shore Gold said in a statement.

The company, which is engaged in the exploration and development of gold properties in Northern Ontario and Quebec, said underwriters would have an overallotment option of 15 percent of the offered shares.

Shares of the Toronto, Ontario-based company, which have gained 17 percent in the past three months, closed at C$3.75 Wednesday on the Toronto Stock Exchange. (Reporting by Koustav Samanta in Bangalore; Editing by Unnikrishnan Nair)