The company acquired direct ownership of a total of 21.69 million common shares of Golden Share representing 19.9% of the outstanding shares, as well as warrants to acquire an additional 10,845,000 common shares of Golden Share at an exercise price of $0.20 per share.
The common shares and warrants were acquired through a private transaction in return for the transfer of certain real property and mineral interests.
The companies have entered into a shareholder agreement which provides Lake Shore Gold with the right to participate pro rata in future equity financings by Golden Share in order to maintain its ownership interest.
This right extends for a period of five years provided that Lake Shore Gold continues to own not less than 9.9% of Golden Share’s issued and outstanding common shares.
Lake Shore Gold also holds a 1% net smelter returns royalty on future gold and other metals produced from the property.
