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Lake Shore Gold Most Active on TSX, Enters into Agreement with Franco-Nevada for $50 Million Royalty and Equity Investment
By: MT Newswires
Lake Shore Gold Corp. (LSG.TO)shares are up 18.12% today, with more than 6,5 million shares changing hands.
The company announced yesterday that it has entered into an agreement with Franco-Nevada Corporation (FNV.TO) through which Franco-Nevada will pay to the Company US$35 million for a 2.25% net smelter return ( NSR ) royalty on the sale of minerals from LSG's Timmins West Complex. In addition, Franco-Nevada will pay C$15 million to acquire 10,050,591 LSG common shares on a private placement basis, with the purchase price per share of C$1.49 representing a 5% premium to the 10-day volume weighted average price.