Aussie dispute over Super Pit settled

An agreement has been reached between Homestake Mining (HM-N) and Gold Mines of Kalgoorlie (GMK) over disputed production shares at Western Australia’s Super Pit.

GMK has accepted Homestake’s US$51.4 million offer to buy all of GMK’s past and future rights under their Disproportionate Sharing Arrangement (DSA), which, at times, entitled GMK to receive more than a 50% share of gold production there.

Under the new agreement, each company will share equally in gold production, and GMK will drop legal proceedings involving the production formula outlined in the DSA.

Back in the U.S., Homestake has awarded a contract to Kilborn SNC-Lavalin for the engineering, procurement and construction management of the Ruby Hill project near Eureka, Nev. Homestake will spend US$65 million to develop the West Archimedes gold-silver deposit there.