Homestake Mining Company and Gold Mines of Kalgoorlie Limited Settle Disproportionate Share Arrangement Dispute.SAN FRANCISCO--(BUSINESS WIRE)--June 13, 1996--Homestake Mining Company (NYSE NYSE See: New York Stock Exchange :HM), announced today that Gold Mines of Kalgoorlie Limited (GMK GMK Grand Master Key (locksmithing) GMK Gnu Make File ) has accepted an offer of $51.4 million (A$65 million) from Homestake Gold of Australia Limited (HGAL) to purchase all of GMK's past and future rights and entitlements under the Disproportionate Sharing Arrangement (DSA (1) (Directory Server Agent) An X.500 program that looks up the address of a recipient in a Directory Information Base (DIB), also known as white pages. It accepts requests from the Directory User Agent (DUA) counterpart in the workstation. ). The net effect is that from June 19, 1996, each party will share gold production equally from the Super Pit operation in Kalgoorlie. Previously, under certain circumstances, GMK was entitled to receive greater than 50 percent of gold production sourced from the first 32.5 million tonnes of ore mined from a specific area of the operation - an entitlement known as the DSA. Under the agreement, GMK will discontinue litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. commenced against HGAL over past differences in interpretations of the formula used to calculate the DSA entitlement. GMK and HGAL also have agreed to settle all other matters in dispute and to work more closely with Kalgoorlie Consolidated Gold Mines Pty Ltd PTY LTD Propriety Limited (company structure in Australia) , manager of the Kalgoorlie operations, to maximize the future potential of Australia's largest gold mine. Homestake Mining Company is an international gold mining company with substantial gold mining operations and exploration primarily in the United States, Canada and Australia. The Company expects to produce 1.8 million ounces of gold in 1996. CONTACT: Homestake Mining Company Michael A. Steeves, Director, Investor Relations Investor relations The process by which the corporation communicates with its investors. 415/983-8169 |
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