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TORONTO - Stock in Lake Shore Gold Corp. (TSX:LSG.TO - News) fell sharply in extremely heavy volume Friday after the miner announced a significant increase in its public offering of convertible senior unsecured debentures.

In early afternoon trading, the issue was down 15 cents, or 13.51 per cent, at 96 cents on the Toronto Stock Exchange.

Volume was more than seven million shares, well above the stock's daily average of less than one million, which easily made it the most active issue on Toronto's main board.

Earlier, the company said it was increasing its previously announced bought deal offering by $15 million to $90 million.

The convertible senior unsecured debentures, at a price of $1,000 per debenture, bear interest of 6.25 per cent, payable semi-annually and mature Sept. 30, 2017.

The debentures are convertible into common shares at a conversion price of $1.40 per share.

Net proceeds will be used to repay the company's US$50 million, three-year corporate revolving facility and for general corporate purposes, Lake Shore said in a release.

Lake Shore Gold is active in the Timmins Gold Camp in northern Ontario where it operates three wholly owned, multimillion-ounce gold complexes.