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Lachlan Star Gains Substantial Shareholder

Gold producer Lachlan Star (ASX: LSA) has added I.G. Investment Management to its register as a substantial shareholder with a 5.24% interest.

I.G. Investment Management holds 4.8 million shares in Lachlan.

Lachlan was recently added to the All Ordinaries Index in the March quarterly S&P/ASX rebalance.

The company had around A$7.5 million in cash at the end of December 2012 and has raised a up to a further C$10 million via a secured debt facility with Sprott Resource Lending Partnership.

The proceeds from the debt facility will be used as working capital to advance Lachlan's projects.

The company's owner mining fleet has been operating at budgeted levels and mining at the high grade Chisperos pit is now accessing ore.

The debt facility provides working capital for the company, setting it up for a strong calendar year 2013.

Last quarter Lachlan produced 13,722 ounces of gold at its CMD Gold Mine in Chile, an increase of 32% under its ownership.

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