- Category: Economic
- Published Monday, February 8, 2016
- CTV News
VANCOUVER -- Tahoe Resources Inc. has a friendly deal to buy Lake Shore Gold Corp. and its two mines in Northern Ontario in return for stock in the Vancouver-based mining company (TSX:THO).
The proposed combination -- which values Lake Shore at about $945 million -- would add the Timmins West and Bell Creek mines in Timmins, Ont., to Tahoe's holdings, which include mines in Guatemala and Peru.
Lake Shore shareholders are being offered 0.1467 of a Tahoe common share (TSX:THO) for each of their shares (TSX:LSG).
Based on Friday closing prices, the offer is worth $1.71 per Lake Shore common share -- a 14.8 per cent premium to the closing price of Lake Shore common shares on Friday.
Lake Shore will give Tahoe a right to match any superior proposal and each company has agreed to pay the other a termination fee under certain circumstances if the deal isn't completed.
The boards of the two companies are unanimously recommending the combination, which requires approval by two-thirds of the votes cast at a special meeting of Lake Shore shareholders.