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TORONTO,
ONTARIO--(Marketwire - Nov. 6, 2009) - 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.
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