Franco-Nevada pays $35 million for a 2.25% royalty on mineral sales
By Devika Patel
Knoxville, Tenn., Feb. 8 - Lake Shore Gold Corp. said it will conduct a C$14.98 million private placement of stock with a single investor.
The company will sell 10,050,591 common shares at C$1.49 per share to Franco-Nevada Corp. The price per share represents a 5.67% premium to the Feb. 7 closing share price of C$1.41.
Settlement is expected Feb. 29.
Lake Shore Gold also said the investor will pay the company $35 million for a 2.25% net smelter return royalty on mineral sales from the Timmins West Complex.
Lake Share is a gold producer based in Vancouver, B.C.
| Issuer: | Lake Shore Gold Corp.
|
| Issue: | Common stock
|
| Amount: | C$14,975,381
|
| Shares: | 10,050,591
|
| Price: | C$1.49
|
| Warrants: | No
|
| Investor: | Franco-Nevada Corp.
|
| Pricing date: | Feb. 8
|
| Settlement date: | Feb. 29
|
| Stock symbol: | Toronto: LSG
|
| Stock price: | C$1.38 at close Feb. 8
|
| Market capitalization: | C$552.23 million
|
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