Lk Shore, Holmer tie knot

Vancouver — Lake Shore Gold (LSG-V) has acquired all the shares of Holmer Gold Mines (HGM-V) through a merger.

The marriage combines the previously joint-ventured interests in the Timmins Gold project and other properties in Ontario and Quebec.

The combination has seen Lake Shore issuing one share for every 1.5 Holmer Gold shares. Holmer shares were delisted following the merger.

Since optioning the Timmins Gold project in mid-2003, Lake Shore has drilled more than 31,000 metres of core, resulting in a 200% increase (using uncut grades) in resource figures over a figure calculated in 2002 by Watts Griffis & McOuat.

The project has an indicated resource of about 1.4 million tonnes averaging 11 grams gold per tonne, with a cutoff grade of 6 grams gold per tonne. An additional 200,000 tonnes of inferred resource grading 8.7 grams gold have been outlined.

Lakeshore Gold has 67.1 million shares outstanding and recently traded in the 95 range.