UPDATE 1-Hochschild to cut stake in Lake Shore Gold to 6 pct

* Hochschild to sell 109 mln Lake Shore shrs at C$3.60 each

* To raise C$392.4 mln through deal

* Syndicate to purchase shares on bought deal basis

* Lake Shore not to receive any proceeds from deal

Oct 14 (BestGrowthStock) – Hochschild Mining plc (HOCM.L: ) plans to
cut its stake in Canadian miner Lake Shore Gold Corp (LSG.TO: )
by about 29 percent points to raise about C$392.4 million
($391.2 million).

Hochschild, which currently holds about a 35 percent stake
in Lake Shore, has agreed to sell 109 million Lake Shore shares
at C$3.60 apiece, a 3 percent discount to the Canadian
company’s Wednesday close of C$3.70.

The Latin American precious metals miner, whose stake in
Lake Shore will come down to 5.7 percent, will sell the shares
on a bought deal basis to a syndicate comprising RBC Capital
Markets, BMO Capital Markets and CIBC World Markets.

Lake Shore, which has exploration properties in Northern
Ontario and Quebec, will not receive any proceeds from the
transaction.

Hochschild plans to use the funds for its exploration
pipeline, including funding the Azuca and Inmaculada projects
in Peru.

The deal is expected to close by Nov. 3.
($1=1.003 Canadian Dollar)
(Reporting by Ashutosh Joshi in Bangalore; Editing by Anne
Pallivathuckal)

UPDATE 1-Hochschild to cut stake in Lake Shore Gold to 6 pct