However, Richard Stumbo Jr, vice-president finance for Homestake emphasized the deal was “fraught with contingencies” including first rights of refusal by several of Esso’s joint venture partners. Claiming that he was pleased with the quality of the assets, Thompson said,”I hope we can develop some operating mines out of those properties.” He added that Homestake didn’t bid on Esso’s 35% interest in Mines Selbaie and its royalty interest in the Midwest uranium deposit even though Homestake has base metal assets. “The Selbaie asset would have been an expensive one to buy,” he insisted, adding that “we are primarily a gold mining company and wish to remain so.”
Homestake’s base metal assets are held in a 42.5%-owned affiliate, The Doe Run Company, which operates the largest primary lead producer in North America. It has six mines, four mills, and two smelters, all located in Missouri.
Stumbo said that Doe Run is “looking at adding additional production so that fills up our base metals plate at this time.”
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