Miner Tahoe Resources Inc (TAHO.N) (THO.TO) said it would buy Canada’s Lake Shore Gold Corp (LSG.TO) for about C$751 million ($540 million) to add low-cost gold mines in Ontario to its portfolio.
Precious metals miners have been clamping down on costs amid a sharp decline in the price of bullion that has weighed on exploration spending, capital to sustain operations and dividends.
Spot gold prices XAU= have fallen nearly 40 percent from its peak of $1,920.30 an ounce in September 2011. The deal comes after Goldcorp Inc (G.TO) sold its 25.6 percent stake in Tahoe for C$998.5 million last June.
Tahoe had also bought smaller rival Rio Alto Mining Ltd RIO.TO in a cash-and-share deal valued at C$1.4 billion last February to expand its presence in Latin America.
Lake Shore Gold operates Timmins West and Bell Creek mines in Timmins, Ontario, while Tahoe has a mine in Guatemala and two mines in Peru.
For the rest of this article, click here: http://www.reuters.com/article/us-lakeshore-m-a-tahoe-resources-idUSKCN0VH0ZJ