TIMMINS – There was so much excitement and market speculation about a Lake Shore Gold Timmins property that trading in company shares was halted on Friday and the company was asked by regulators to issue a public statement.
This follows the positive news that was released by the company on Thursday revealing the results of 13 drill holes for a high grade gold zone at the “Whitney Project” which describes the area located near the old Hallnor Mine property in Timmins.
The results are from the first surface exploration drilling done on the Whitney property since LSG became the new owners last fall. The Whitney property was a prospect that was owned and explored by Temex Resources Corp. Just last September, Temex shareholders approved a takeover deal by Lake Shore for all outstanding common shares.
In a news release issued Thursday, the company said the new drilling results were good.
“We are very encouraged by today’s results, our first from the Whitney Project. Whitney was the primary reason we acquired Temex last September, given its considerable exploration potential, existing resources and close proximity to our Bell Creek Mill,” said company president Tony Makuch of Timmins, in a news release on Thursday.
Trading for LSG.TO opened Friday morning at $1.32 and quickly rose to $1.50. Trading was halted at the TSX at 1:05 p.m. by order of the Investment Industry Regulatory Organization of Canada (IIROC). Two hours later at 3:15, trading resumed.
Mark Utting, the company’s vice president of investor relations told The Daily Press the halt appeared to be in response to speculation.
“Well what happened was we became aware of some speculation, some rumours in the market which drove an extremely high volume. If you look at the TSX … we were up 16 or 17 million shares, total trading, not just the TSX,” Utting explained.
For the rest of this article, click here: http://www.timminspress.com/2016/02/05/trading-halted-on-lake-shore-gold-shares