Hochschild Cuts Canada Exposure

Hochschild says in a press release it is reducing its stake in Canadian gold miner Lake Shore Gold to 6% from 35%. The stake is being sold for CAD392m or CAD3.60 per share on a bought deal basis to Canada-based banks RBC Dominion, BMO Nesbitt Burns and CIBC World Markets. Proceeds from the sale will be used to bring the Azuca and Inmaculada projects to production. Wednesday, Hochschild said it would acquire a 30% stake in the Inmaculada gold and silver project in southern Peru from Arizona-based JV partner International Minerals, bringing the total stake to 60%. The deal involves an initial cash consideration of $15m, an agreement to fund the project’s first $100m of capex and a $20m private placement with International Minerals.