Shareholders of Homestake Mining (NYSE) voted 92% in favor of a proposal to issue about 37.3 million common shares to acquire International Corona (TSE).
Homestake received the necessary shareholder approval at its annual meeting in mid-July, and expects to take up and pay for the shares once 90% of Corona shares are tendered.
The terms of the offer allowed Corona shareholders to tender their shares until July 22.
The acquisition, also approved by Investment Canada, will vault Homestake into the top ranks of North America’s gold producers.
Once the merger is completed, Homestake’s 1992 production from mines in Canada, the U.S. and Australia, is expected to total about 1.8 million oz. Most of Homestake’s current production is from high-cost underground operations such as its namesake mine in South Dakota. Corona, on the other hand, has interests in low-cost mines at Hemlo, Ont., which will reduce Homestake’s overall production costs.
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