Lake Shore Gold plans normal course issuer bid for 6.25% convertibles

By Marisa Wong

Morgantown, W.Va., Dec. 8 – Lake Shore Gold Corp. said it plans to make a normal course issuer bid to purchase for cancellation up to 103,500 of its 6.25% convertible debentures due Sept. 30, 2017.

The issuer bid will take place over a one-year period, with the number of debentures subject to the issuer bid representing up to 10% of their public float as of Nov. 30, according to a press release.

As of Nov. 30, the company had C$103.5 million principal amount of the debentures outstanding.

The company intends to fund the purchases through working capital.

The issuer bid is subject to acceptance by the Toronto Stock Exchange. Debentures will be purchased through facilities of the exchange at prevailing market prices at the time of purchase.

The maximum amount of daily purchases may not exceed the greater of 25% of the average daily trading volume of the debentures or 1,000 debentures. The company may make, once per calendar week, a block purchase of debentures not owned, directly or indirectly, by insiders of the company that exceeds the daily repurchase limit.

Tony Makuch, president and chief executive officer of Lake Shore Gold, commented in the press release, “Supported by a strong balance sheet and solid operating and financial performance, we continue to be aggressive with debt repayment. The introduction of a [normal course issuer bid] for the convertible debentures follows the full repayment of our senior secured debt earlier this year, with our final payment being made on May 29, 2015.

“Looking ahead, we are on track to finish 2015 with close to C$100 million of cash (before any purchases of the convertible debentures) and, assuming current gold prices, are positioned for continued growth in our cash position between now and Sept. 30, 2017 when the convertible debentures mature.”

Lake Shore is a Toronto-based gold producer with wholly owned operations in the Timmins Gold Camp.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.