Mining News: Northern Neighbors: Auryn buys Homestake

Auryn Resources Inc. Sept. 8 reported the acquisition of all of the issued and outstanding common shares of Homestake Resource Corp. Homestake Resources’ primary asset is Homestake Ridge, a high-grade gold mine project in northwestern British Columbia. According to a 2013 calculation, the three main deposits at Homestake hosts 604,000 metric tons of indicated resource averaging 6.4 grams-per-metric-ton (124,000 ounces) gold; 48.3 g/t (939,000 oz.) silver; and 0.18 percent (2.4 million pounds) copper. Additionally, these deposits host 6.77 million metric tons of inferred resource averaging 4.2 g/t (911,000 oz.) gold; 93.6 g/t (20.37 million oz.) silver; and 0.11 percent (16.3 million lbs.) copper. Under the arrangement, Homestake shareholders were issued one Auryn share for each 17 Homestake common shares held. As a result, roughly 3.3 million Auryn shares were issued. In addition, Auryn issued 437,675 shares at C$2.30 per share to settle outstanding debt of C$1,006,655 payable to former creditors of Homestake. The arrangement was approved at an Aug. 25 special meeting of Homestake shareholders.

-Shane Lasley