NEWS ROUNDUP — TVX buys Homestake interests

TVX Gold (TSE) will acquire Homestake Mining’s (NYSE) half interest in the Mineral Hill and Jardine joint ventures.

The agreement will bring TVX’s interest in both Montana gold properties to 100%.

TVX President John Hicks said “Homestake was in the process of rationalizing some of their smaller operations and it seemed logical for us to purchase the other half interests in the joint ventures.”

He added that “while current reserves indicate a 3-year mine life . . . there is good upside potential, especially with the Jardine joint venture.” With the purchase, TVX will increase its annual gold production by about 22,000 oz.

The purchase price for the two interests consists of cash payments totaling US$4 million, 140,000 common shares of TVX and a 1.25% net smelter return royalty on the Jardine property, payable after TVX has recovered 400,000 oz. gold or gold equivelant.