Lake Shore Gold Lower As Gold Slips Below $1,600/Oz.; Signs Formal Pact to Option Mexican Properties
Lake Shore Gold Corp. (LSG.TO) continues to grind lower, now down 6 cents at $1.15 a share in late trade and the miner signing an option agreement with Revolution Resources Corp. (RV.TO) for four of Lake Shore's largest properties in Mexico acquired as part of the firm's 2009 purchase of West Timmins Mining.
Revolution has the option to acquire a 100% interest in both the Universo Gold and Montana de Oro property portfolios and can acquire an initial 60% interest by issuing enough of its shares to give Lake Shore a 9.9% stake in Revolution.
It also must incur $35 million in expenditures on the properties by August 31, 2016 and, within 30 days of incurring $15 million in expenditures, issue to Lake Shore Gold $1 million in common shares of Revolution.
Revolution can buy the Universo Gold and Montana de Oro properties by paying $20, either in cash or stock, for every ounce of gold equivalent in a NI43-101 compliant resource estimate for each of the properties.
Revolution shares are down 7% at 32.5 cents.
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