ROYALTY DEAL: Lake Shore, Franco-Nevada ink $50-M deal

TORONTO – Lake Shore Gold and Franco-Nevada Corp. have signed a royalty and equity deal that will put $50 million in Lake Shore’s treasury. Franco-Nevada has paid $35 million for a 2.25% net smelter return royalty on the sale of gold from Lake Shore’s Timmins West complex. Franco-Nevada also paid $15 million to acquire 10.1 million common shares of Lake Shore on a private placement basis.

Lake Shore has produced the preliminary economic assessment for the Timmins West project, outlining mining plans for the Timmins West and adjacent Thunder Creek deposits. Mine development will have a pre-production cost of roughly $93 million plus $67 million to increase capacity 50% to 3,000 t/d at the company’s existing Bell Creek mill.

Lake Shore’s latest presentation is available at LSGold.com.