Monday, 23rd June 2008 (461 views)

Hochschild Mining has bought 11.8 million shares in Lake Shore Gold Corporation, according to Thomson Financial News.

This will increase its stake in the Canadian company to 40 per cent. It bought the shares from FNX Mining for a total of C$21.4 million.

In total, Hochschild Mining has now spent C$165.6 million in acquiring the stake.

The company has a project in San Felipe, Mexico. San Felipe covers around 14,498 hectares and has ten mining concessions. Production at the project is planned to start in 2010.

Earlier this month Hochschild Mining bought out its joint venture partner in the San Felipe project for $51.5 million, according to Reuters.

"The San Felipe Project has the potential to be our largest and most important project since listing and will contribute significantly to our growth strategy to 2011 and beyond," said executive chairman Eduardo Hochschild.

Exploration projects are also underway in Peru, Argentina and Chile.

Canadian company Lake Shore Gold has several projects in Ontario and Quebec at the Timmins gold mining district.

 

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