Vancouver-based Tahoe Resources acquires Lake Shore Gold. Tahoe announced that it would acquire all of the shares of Lake Shore Gold in an agreement to combine the companies. Under the agreement, Lake Shore shareholders will receive 0.
Vancouver-based Tahoe Resources acquires Lake Shore Gold.
Tahoe announced that it would acquire all of the shares of Lake Shore Gold in an agreement to combine the companies.
Under the agreement, Lake Shore shareholders will receive 0.1467 shares of Tahoe common stock per Lake Shore share. Once the transaction closes, Tahoe and Lake Shore shareholders will own approximately 74% and 26%, respectively, of the new company.
“The combination with Tahoe represents a unique opportunity for our shareholders to be exposed to a high-quality portfolio of long-lived producing mines with substantial mineral reserves,” Lake Shore CEO Tony Makuch said in a statement. communicated.
On February 4, Lake Shore announced that it had discovered new gold mineralization on its Whitney project, which the company acquired when it took over from Temex Resources in September.
Makuch said the discovery of the new mineralization shows the long-term potential of the Timmins portfolio.
“Tahoe’s strong balance sheet and superior cash-generating capabilities will provide Lake Shore Gold with the financial resources to unlock the tremendous growth potential of our asset base,” Makuch said.
Lake Shore Gold operates the Timmins West and Bell Creek gold mines, as well as the Bell Creek Mill in Timmins.
Tahoe Resources operates the Escobal silver mine in Guatemala and the La Arena gold mine in Peru, and is developing the Shahuindo project, also in Peru.
Shareholders of both companies must first approve the combination, which is expected to take place in April, and the deal is expected to be finalized shortly thereafter.