Lake Shore Gold has raised gross proceeds of more than $15 million for exploration at its Timmins gold properties.
The company announced it has closed a private placement of 12,900,000 flow-through common shares on a bought deal basis at a price of $1.17 per share.
The funds are earmarked for follow-up drilling on some encouraging results at Lake Shore’s 144 Target Area, specifically a new gold zone west of Timmins called the 144 Gap Zone.
The zone of mineralization established to date is 100 metres along strike and 250 metres down dip. It’s located southwest of the Timmins West Mine, one of two mines Lake Shore operates in the Timmins camp.
The company said limited drilling has yielded encouraging high-grade results that they believe may eventually add “substantial new resources” to the Timmins West Mine.
Plans for an underground program at the 144 Gap Zone were being finalized last month along with a strategy to increase a surface drilling program from 10,000 metres to 15,000 metres.
