MONTREAL, QUEBEC--(Marketwire - March 28, 2011) - Golden Share Mining
Corporation ("Golden Share")(TSX
VENTURE:GSH) is pleased to announce that it has signed a letter of
intent dated March 25th, 2011 (the "LOI") to acquire Lake
Shore Gold Corp.'s ("Lake Shore Gold") 100% interest in the
Band Ore gold property ("Band Ore property"), located in the Shebandowan belt of northwestern Ontario. Under the
terms of the LOI, and if the Band Ore transaction (the
"Transaction") is successfully completed, Lake Shore Gold
would in return obtain a 19.99% interest in Golden Share, which may be
increased to as much as 30% under certain conditions, and thereby
become the Company's single largest shareholder.
Golden Share holds an important land position in the Shebandowan greenstone belt, an underexplored
classic Archean sequence exhibiting strong
similarities to the Hemlo, Timmins, Kirkland
Lake and Val d'Or gold camps both in geological and tectonic evolution.
The Shebandowan belt is situated
approximately 70 km west of Thunder Bay and is readily accessible by
Lake Shore Gold's Band Ore property is immediately adjacent to Golden
Share's recently optioned Conacher property
and hosts the Band Ore deposit which contains historical resources of
251,271 ounces of gold within two principal zones (706,000 tonnes at a grade of 6.86 g/t Au(i)
in the Main zone and 616,000 tonnes at a
grade of 4.83 g/t Au(i) in the #4 zone).
Following completion of the Transaction, Golden Share will control an
18 kms of strike length along the northern
part of the Shebandowan belt highlighted by
two advanced gold targets (see figure # 1: http://media3.marketwire.com/docs/Figure_1_Shebandowan_Gold_Play.pdf or
visit http://www.goldenshare.ca) :
-- Pistol Lake JF's West zone : 150,699 oz Au Inferred Resource (2,857,200
MT @ 1.64 g/t Au at 1.00 g/t Au cut off / NI 43-101 compliant).
-- Band Ore deposit : 251,271 oz Au in historical resources within two
principal zones (706,000 tonnes at a grade of 6.86 g/t Au(i) in the Main
zone and 616,000 tonnes at a grade of 4.83 g/t Au(i) in the #4 zone).
President and CEO of Golden Share, commented: "The consolidation
of ownership in the area through the acquisition of Lake Shore Gold's
Band Ore property provides tremendous opportunities for both companies
and their shareholders. The combination of the Pistol Lake and Band Ore
advanced gold targets generates an excellent critical mass to
aggressively pursue a resource development strategy with a first
targeted objective of 1,000,000 ounces of gold. Additionally, the
expanded property provides outstanding blue-sky opportunities through
numerous untested geological models and mineralized surface showings.
To our knowledge, this is the first time in the region's history that a
cohesive and unified land package has been established and the resulting
regional strategic approach will allow a much more comprehensive and
efficient development of this underexplored gold belt."
Under the terms of the LOI, Lake Shore Gold has agreed to sell its 100%
interest in the Band Ore property in exchange for a 19.99% ownership
interest in Golden Share. The number of shares to be issued to Lake
Shore Gold as a result of the Transaction will be established upon
completion of a financing for no less than $2.5 million from third
party investors to be executed by Golden Share following the signing of
the LOI. Closing of the Transaction is conditional upon completion of
the financing. In addition, Golden Share has agreed to grant Lake Shore
Gold warrants to purchase 50% of the number of
shares to be issued pursuant to the Transaction.
The LOI also specifies that :
-- So long as Lake Shore Gold's ownership interest is above 9.9%, Lake
Shore Gold will have the right to participate in Golden Share's future
financings in proportion to Lake Shore Gold's pro rata share for a
period of five years, so as to maintain the percentage interest in
Golden Share. In the event Lake Shore Gold's ownership decreases below
9.9% this right will cease.
-- For a period of five years, Lake Shore Gold will have the right to
increase its shareholding in Golden Share to up to 30% by purchasing
additional shares from Golden Share in a private placement using the 20
day Volume Weighted Average Price of the Golden Share shares at that
-- Lake Shore Gold will retain a 1% Net Smelter Return Royalty ("NSR") on
all minerals produced from the Band Ore property.
-- Lake Shore Gold will have the right to nominate one director to the
board of Golden Share as long as Lake Shore Gold's interest in Golden
Share stays at or above 9.9%.
-- Golden Share agrees to incur a minimum of $250,000 in exploration
expenditures on the Band Ore property within the next two years.
This transaction is subject to the negotiation
and execution of a definitive agreement as well as to the approval of
relevant stock exchanges and other regulatory authorities as necessary.
About the Shebandowan greenstone belt
The Southern part of northwestern Ontario is increasingly being
recognized as an emerging gold province (see figure 2: http://media3.marketwire.com/docs/Figure_2_Emerging_Gold_Province.pdf or visit : http://www.goldenshare.ca).
In the Fort Frances area, Rainy River has so far defined over 5 M oz Au in Indicated and Inferred Resources on their
Rainy River Project. In the Atikokan area, Osisko Mining Corporation acquired Brett Resources
Inc. following the discovery of the 6.7 M oz
Au Hammond Reef deposit. The Shebandowan
greenstone belt lies at the eastern end of this prolific province and
is the object of intensifying exploration. Foundation Resources Inc.
and Alto Ventures reported diamond drilling results of 8.39 g/t Au over
11.0 m and 4.88 g/t Au over 27.3 m on the East Coldstream
Deposit located 15 km west of Golden Share's Pistol Lake property. In
July 2010, Moss Lake Gold Mines ltd. provided an upgraded NI 43-101
resource estimate for its + 1 M oz Au Moss
About Golden Share Mining Corporation
Golden Share Mining Corporation is a young Canadian exploration company
targeting the gold belts of Eastern Canada.
The Company has 67 M O/S, a cash position of $1M and no debt. Golden
Share development's strategy involves advancing a well balanced
portfolio of gold properties in a politically stable environment with a
history of gold endowment through systematic exploration, resource
definition and acquisitions.
Philippe Giaro, P. Geo., President and CEO of
Golden Share Mining Corporation and Qualified Person for Golden Share,
has reviewed and approved the content of this release.
(i)These estimates were executed prior to the introduction of National
Instrument 43-101; hence they should be treated as historical data and
therefore not be relied upon.
FOR MORE INFORMATION, CONSULT http://www.goldenshare.ca OR
OUR FACEBOOK PAGE AT http://www.facebook.com/#!/profile.php?id=100001472712018&v=wall
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that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.