Lakeshore Gold part of friendly takeover

The proposed deal  would add the Timmins West and Bell Creek mines to Tahoe’s other assets, which include mines in Guatemala and Peru.

Tahoe Resources Inc. has a friendly deal to buy Lake Shore Gold Corp. and its two mines in Timmins in return for stock in the Vancouver-based mining.

Lake Shore will give Tahoe a right to match any better proposal and each company has agreed to pay the other a termination fee under certain circumstances if the deal doesn’t go through

The boards of the two companies are unanimously recommending the combination.

Lakeshore CEO, Tony Makuch says it’s a win-win for both companies.

“The combination with Tahoe represents a unique opportunity for our shareholders to gain exposure to a high-quality portfolio of long life producing mines with substantial mineral reserves. Today’s announcement of an initial resource at our 144 Gap Deposit is a perfect example of the long-term growth potential of our Timmins portfolio. Tahoe’s strong balance sheet and superior cash generating capabilities will provide Lake Shore Gold with the financial resources to unlock the enormous growth potential of our asset base.”