UPDATE 2-Miner Tahoe Resources adds Ontario gold mines with Lake Shore buy

Mon Feb 8, 2016 8:23am EST
 
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* Offer valued at C$1.71/shr

* Offer 15 pct premium to Lake Shore

* Tahoe to own about 74 pct of combined co (Adds background, details)

Feb 8 (Reuters) - Miner Tahoe Resources Inc said it would buy Canada's Lake Shore Gold Corp for about C$751 million ($540 million) to add low-cost gold mines in Ontario to its portfolio.

Precious metals miners have been clamping down on costs amid a sharp decline in the price of bullion that has weighed on exploration spending, capital to sustain operations and dividends.

Spot gold prices have fallen nearly 40 percent from its peak of $1,920.30 an ounce in September 2011.

The deal comes after Goldcorp Inc sold its 25.6 percent stake in Tahoe for C$998.5 million last June.

Tahoe had also bought smaller rival Rio Alto Mining Ltd in a cash-and-share deal valued at C$1.4 billion last February to expand its presence in Latin America.

Lake Shore Gold operates Timmins West and Bell Creek mines in Timmins, Ontario, while Tahoe has a mine in Guatemala and two mines in Peru.   Continued...