Homestake Sells Two Mines for $35 Million

Homestake Mining Co. of San Francisco has agreed to sell Galactic Resources Ltd. all its interests in two mining properties for $35 million in the form of cash or Galactic common stock, according to a filing with the Securities and Exchange Commission.

If Galactic pays Homestake in common stock, the miner of precious metals would receive a minimum of 2.5 million shares, or 7.5 % of the Vancouver-based company’s common shares, to become its largest stockholder.

Galactic, a developer of mineral resources, will acquire a 100% interest in the Bodie property and either the Spanish Mine or Engineers Pass properties. The Bodie and Spanish Mine properties are located in California, and Engineers Pass is in Colorado.

Also, Galactic has agreed to sell Homestake Mining Co. of San Francisco 500,000 Galactic common shares for $4.5 million in cash in a private placement, according to the filing.