Dale should do what Lake Shore's just announced, get a $50m loan at 6%.
Does he really believe a $80m placement financing with Dundee and the other nine sharks is any better than getting a loan (credit facility) with the other sharks. The interest is tax deductable and our internal rate of return should be much better than 6%.
Just one shareholders opinion, cheers
Lake Shore Gold Signs Term Sheet for Corporate Revolving Credit Facility of Up to US$50 Million6:00AM ET on Wednesday Jul 28, 2010 via Marketwire
Lake Shore Gold Corp. (TSX: LSG) ("Lake Shore Gold" or the "Company") today announced that it has signed a term sheet with UniCredit Bank AG ("UniCredit") for a three-year, corporate revolving credit facility of up to US$50 million ("Facility"). Funds drawn on the Facility upon closing will be used for capital expenditures related to the Company's projects, principally its Timmins Mine, Thunder Creek, the Bell Creek Complex and Bell Creek Mill, and for general corporate purposes. The cost of the Facility, including fees, is expected to average approximately 5.0% to 6.0% annually based on current interest rates. The Facility will also include a 1.5% per annum commitment fee on undrawn amounts. There is no hedging requirement related to the Facility included in the term sheet. The Facility is subject to a legal and technical due diligence review, final credit approval and documentation and the payment of fees, costs and expenses, with closing anticipated in the fourth quarter of 2010.
Tony Makuch, President and CEO of Lake Shore Gold, commented: "We continue to strengthen our balance sheet in support of our goal to build Lake Shore Gold into a new, mid-tier gold producer. With up to US$50 million available under the proposed credit Facility upon its closing, we will be well positioned to build on the significant investments made in our Timmins projects to date and will have greater financial flexibility to further advance our projects going forward."
