Lake Shore Gold Corp To Buy Gold Project From Barrick for $60 Million
Canadian miner Lake Shore Gold Corp (LSG.TO) said it would acquire the Fenn-Gib gold project from Barrick Gold (ABX.TO) for $60 million in stock as part of its plans to double the size of its gold resource, Reuters reported.
Lake Shore last traded at $3.77. Barrick last traded at $46.06.
Lake Shore reportedly said it would issue about 14.9 million shares to pay for the deal. Of those shares, about 14.4 million shares would go to Barrick, which would give it a 3.6% stake in the Lake Shore.
Barrick also retains back-in rights for a 51% interest in Fenn-Gib project if a minimum of 5 million ounce resource estimate is confirmed, said Lake Shore, which is targeting an initial resource estimate of at least 2-3 million ounces.
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