TORONTO, ONTARIO, Nov 06 (MARKET WIRE) --
Lake Shore Gold Corp. (TSX: LSG) ("Lake Shore Gold") and West Timmins
Mining Inc. (TSX: WTM) ("West Timmins") today jointly announced that the
companies have completed the business combination originally announced
August 27, 2009. Under terms contemplated by the Business Combination
Agreement, Lake Shore Gold has acquired all of the outstanding common
shares of West Timmins with West Timmins shareholders receiving 0.73 of a
Lake Shore Gold common share for each common share of West Timmins. Lake
Shore Gold is issuing approximately 104 million common shares through the
transaction.
Tony Makuch, President and Chief Executive Officer of Lake Shore Gold,
commented: "We are pleased to welcome the shareholders of West Timmins to
Lake Shore Gold. Completing the transaction has created the next major,
wholly owned gold mining complex in Timmins, the Timmins West Gold Mine
Complex (the "Complex"), comprised of approximately 130 square kilometers
of highly prospective property along the Timmins gold structure west of
the Mattagami River Fault. The discoveries at the Timmins Mine and
Thunder Creek confirm the exploration potential of this large land
package. The many surface showings and historic drill results from the
other properties within the Complex highlight the potential for
additional gold discoveries and resource development throughout the land
package.
"Very importantly, consolidating Thunder Creek with the Timmins Mine and
accessing it using our existing infrastructure will allow us to
accelerate Thunder Creek's development and achieve significant synergies.
We are currently preparing to commence an underground advanced
exploration program at Thunder Creek, including drifting across to the
high-grade Thunder Creek gold mineralization from the 200 Level and 650
Level at the Timmins Mine. An extensive underground and surface diamond
drilling program will be ongoing throughout the next year, and will
support underground development on ore grade mineralization. Our goal by
the end of 2010 will be to have completed a National Instrument 43-101
resource estimate for Thunder Creek and to have commenced processing
advanced exploration ore from the property."
"We are very pleased to see the closing of the business combination with
Lake Shore Gold," said Darin Wagner, former President and CEO of West
Timmins. "The overwhelming support from our shareholders for this
transaction indicates that they recognize the inherent value in combining
the assets under one banner and we all look forward to the months ahead
as Lake Shore Gold drives aggressively forward on the production and
exploration fronts."
Closing of the transaction follows a vote by West Timmins Mining
shareholders on Wednesday, November 4, 2009, in which approximately 98%
of votes cast were in favour of the business combination. Court approval
of the plan of arrangement was received yesterday, Thursday, November 5,
2009. Shares of West Timmins are anticipated to be delisted from the
Toronto Stock Exchange on Wednesday, November 11, 2009.
Through the Business Combination Agreement, Lake Shore Gold has acquired
West Timmins' 40% interest in the Thunder Creek property as well as
approximately 120 square kilometres of additional highly prospective
exploration property in close proximity to Thunder Creek and the
Company's Timmins Mine. Among these additional properties are the Thorne
Property, which hosts a 400,000 ounce, near surface inferred gold
resource and which has returned recent encouraging drill results from
several mineralized zones, and the 144 Property, which covers 4.0
kilometres of the same volcanic/ultramafic, intrusive/sedimentary contact
which hosts the Timmins and Thunder Creek deposits. In addition, the
transaction also provides Lake Shore Gold with 100% ownership of the
high-grade Lluvia de Oro gold-silver and polymetallic Montana de Oro
projects in Mexico.
About Lake Shore Gold
Lake Shore Gold is a rapidly growing mining company with large land
positions on the west and east-sides of the Timmins gold mining camp. The
Company is currently carrying out an underground advanced exploration
program at its 100%-owned Timmins Mine project, where it has both a shaft
and a ramp. The Bell Creek Mill, located on the east side of Timmins, has
been refurbished to a capacity of 1,500 tonnes per day. The Company is
also making progress with an underground advanced exploration program at
its Bell Creek Complex, including the Bell Creek Mine, Schumacher and
Vogel properties, which have the potential to become the Company's second
mining project in the Timmins Camp. In addition, Lake Shore Gold is
pursuing a number of other highly prospective exploration properties in
Timmins and other parts of Northern Ontario and Quebec, and owns a large
land position in Mexico. The Company's common shares trade on the TSX
under the symbol LSG.
Forward-looking Statements
Certain statements in this press release relating to the Business
Combination transaction between Lake Shore Gold and West Timmins, as well
as Lake Shore Gold's operating and development plans, general exploration
activities and business strategy are "forward-looking statements" within
the meaning of securities legislation. The Company does not intend, and
does not assume any obligation, to update these forward-looking
statements. These forward-looking statements represent management's best
judgment based on current facts and assumptions that management considers
reasonable, including that operating and capital plans will not be
disrupted by issues such as mechanical failure, unavailability of parts,
labour disturbances, interruption in transportation or utilities, or
adverse weather conditions, that there are no material unanticipated
variations in budgeted costs, that contractors will complete projects
according to schedule, and that actual mineralization on properties will
not be less than identified mineral reserves. The Company makes no
representation that reasonable business people in possession of the same
information would reach the same conclusions. Forward-looking statements
involve known and unknown risks, uncertainties and other factors which
may cause the actual results, performance or achievements of the Company
to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking statements. In
particular, fluctuations in the price of gold or in currency markets
could prevent the Company from achieving its targets. Readers should not
place undue reliance on forward-looking statements. More information
about risks and uncertainties affecting the Company and its business is
available in Lake Shore Gold's most recent Annual Information Form and
other regulatory filings which are posted on sedar at www.sedar.com.
Contacts:
Lake Shore Gold
Tony Makuch
President and CEO
(416) 703-6298
info@lsgold.com
Lake Shore Gold
Mark Utting
Vice-President, Investor Relations
(416) 703-6298
info@lsgold.com
www.lsgold.com
West Timmins
Darin Wagner
President and CEO
(604) 685-8311
dwagner@westtimminsmining.com
www.westtimminsmining.com
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