Homestake, Prime to Buy Canadian Mine

Homestake Mining Co. said it will acquire a 76% stake in Toronto-based Inmet Mining Corp.’s Troilus gold mine in two transactions totaling $110 million, increasing its gold reserves by about 7%. Homestake will pay $56 million for a 51% stake in the Quebec mine, while Prime Resources Group will buy the remaining 49% for $54 million. Because Prime is 50.6%-owned by Homestake’s Canadian unit, Homestake will have a 76% interest in the mine. The transactions are due to close Dec. 17. San Francisco-based Homestake is among the mining companies that had been expected to take advantage of the current low gold prices and buy new mining properties. The mine, which opened in January, is expected to produce an average 130,000 ounces of gold and 9.7 million pounds of copper annually over its projected 12-year life. Homestake shares rose 69 cents to close at $12.75 on the New York Stock Exchange.