Replies to post #2324 on Ed's Thread

[Ed Monton]

Shore Gold stock jumps on Newmont investment

Fri Mar 4, 2005 02:50 PM ET

TORONTO, March 4 (Reuters) - Shares of Shore Gold Inc. rose as much as 17.5 percent on Friday, hitting a record high, after Shore said Newmont Mining Corp. , the world's biggest gold producer, would invest about C$50 million in it.
The stock was up 83 Canadian cents, or 13.83 percent, at C$6.83 on Friday afternoon after hitting C$7.05 earlier in the session on volumes that were more than seven times its 90-day average.



Shore Gold said it would issue 18.2 million common shares at C$5.50 each and that Newmont Mining Corp. of Canada Ltd., a division of U.S.-based Newmont Mining, would buy 8.95 million of those shares, a major boost for the tiny Saskatoon, Saskatchewan-based diamond miner.
Newmont will buy another 297,000 shares if the underwriters exercise an option to purchase another 3 million shares at the same price.

"We are extremely pleased with Newmont's vote of confidence through its participation in this financing. Following this offering, Shore will be well-positioned to pursue an aggressive path to advance the Star Diamond Project," said Shore Gold's president and chief executive, Ken MacNeill.

The Star Diamond Project is located roughly 60 kilometres east of Prince Albert, Saskatchewan, and consists of 123 claims covering 27,734 hectares. The project contains diamond-bearing kimberlite that is 100 percent owned by the company.

Newmont will own 9.9 percent of Shore Gold as a result of this investment.

($1=$1.23 Canadian)