Shareholders of Temex Resources voted overwhelmingly for a plan to be acquired by Lake Shore Gold.
In a news release, Temex said 88 per cent of shareholders voted in favour of the deal, which would allow for Lake Shore Gold to acquire all outstanding common shares of Temex.
Under the terms of the proposal, Temex shareholders would receive, for each Temex share, 0.105 of a Lake Shore Gold share, having a value of $0.13 based on the closing price of Lake Shore Gold's shares on the TSX on July 15.
“We are pleased with the very high level of support that our agreement with Temex has received from Temex shareholders,” Tony Makuch, Lake Shore’s president and CEO, said in a release. “The acquisition of Temex will provide Lake Shore Gold with valuable upside potential as we look to leverage our existing infrastructure in the Timmins area and continue to grow our company.
“Temex's Whitney Project is very attractive to us, given its close proximity to our Bell Creek milling facility, its large, high-grade resource and the attractive exploration targets included within its property position,” Makuch added.
Temex holds a 60 per cent interest in a joint venture with Goldcorp on the Whitney property, next to Lake Shore Gold’s Bell Creek Mine and mill, near Timmins.
The Whitney property includes the past producing Hallnor, Broulan Reef and Bonetal mines. The property has resource estimates that include 0.97 million tonnes at a grade of 7.02 grams per tonne for 218,100 ounces of gold in the measured category, 2.3 million tonnes at a grade of 6.77 grams per tonne for 490,500 ounces of gold in the indicated category, and 1.0 million tonnes at a grade of 5.34 grams per tonne for 170,700 ounces of gold in the inferred category.
Temex also owns another highly prospective property in the Juby Gold Project in the Shining Tree area.
