The Daily Press is the city of Timmins broadsheet newspaper.
It looks like Lake Shore Gold in Timmins is able to expand local operations by taking over Temex Resources, a junior mining company that has been working historic mining properties in the East End of Timmins.
LSG is a mid-level gold producer with all its mining operations in Timmins, sees the Temex takeover as a ways to contribute more gold to the newly rejuvenated LSG Bell Creek milling complex in Porcupine, according to a company news release issued last month.
The new deal is based on terms agreed to in June. Under those terms of proposal, as outlined in an earlier news release, Temex shareholders would receive, for each Temex share, 0.105 of a Lake Shore Gold share, having a value of $0.13 based on the closing price of Lake Shore Gold’s shares on the TSX on July 15, 2015.
The Lake Shore deal was made at the end of June, in the midst of a pending deal Temex had with Oban Mining Corporation. As part of the new deal, Temex is now required to provide a termination payment to Oban of $691,896.
The Lake Shore Gold Agreement is subject to the approval of Temex Shareholders and other customary conditions for similar transactions of this nature, said a company news release. It is expect there will be a shareholders meeting before September 20, 2015, which will be needed to seal the deal.
Temex has been active with exploration drilling in the Whitney area for a couple of years based on a 60% interest in a joint venture with Goldcorp Canada Ltd., where Temex is the operator on the Whitney Property. This includes old workings of the Hallnor, Broulan Reef and Bonetal Gold mines, all historic mine properties in Timmins.
The Temex property is immediately adjacent to Lake Shore’s Bell Creek mine and milling complex.
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