UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15 (d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 31, 1997
(December 21, 1997)
HOMESTAKE MINING COMPANY
(Exact name of Registrant as specified in its charter)
Delaware 1-8736 94-2934609
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification Number)
incorporation)
650 California Street, San Francisco, California 94108-2788
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (415) 981-8150
http://www.homestake.com
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Item 5. Other Events.
On December 21, 1997 the Registrant announced an agreement
to acquire Plutonic Resources Limited ("Plutonic"), an Australian
gold producer, for approximately $640 million in stock.
Homestake expects to issue approximately 64.3 million shares to
acquire Plutonic (0.34 of a Homestake common share for each
Plutonic ordinary share), creating the third largest North
American-based gold producer. Following the combination,
Homestake's Australian operations will be the second largest in
that country with substantial potential for future increases in
reserves and mineralized material. After the transaction,
Homestake will have 18 mines (10 underground, 8 surface) in four
countries. Homestake's 1998 Australian gold production is
expected to be 850,000 ounces, or approximately 35 percent of the
Company's total production, growing to 1 million ounces and 40
percent, respectively, in 1999.
The transaction has been approved unanimously by the Boards of
both companies and is expected to close in April 1998. The
transaction is subject to approval by shareholders of both
companies, qualification as a pooling of interests and certain
other conditions. It will be accounted for as a pooling of
interests and will be completed as a Scheme of Arrangement in
Australia.
CAUTIONARY STATEMENT FOR PURPOSES OF THE SAFE HARBOR PROVISIONS
OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.
Statements in this report contain forward looking
statements. The purpose of this cautionary statement is to
identify certain important factors and assumptions on which such
forward looking statements may be based or which could cause
actual results to differ materially from those expressed in the
forward looking statements.
Estimates of Production. Production estimates are derived
from annual mining plans of Homestake and Plutonic that have been
developed based on, among other things, mining experience,
reserve estimates, assumptions regarding ground conditions and
physical characteristics of ores (such as hardness and presence
or absence of metallurgical characteristics), and estimated rates
and costs of production. Actual production may vary from
estimates for a variety of reasons, including risks and hazards
of the type discussed above, and actual ore mined varying from
estimates of grade and characteristics, mining dilution, strikes
and other actions by labor at unionized locations, and other
factors.
Reserves. Ore reserves reflect estimated quantities and
grades of gold in in-situ deposits and in stockpiles of mined
material that Homestake and Plutonic believe can be mined and
sold at prices sufficient to recover the estimated future cash
costs of production, remaining investment, and anticipated
additional capital expenditures. Estimates of costs of production
are based on current and projected costs taking into account past
experience and expectations as to the future. Estimated mining
dilution is factored into reserve calculations.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
Dated: December 31, 1997
HOMESTAKE MINING COMPANY
(Registrant)
By /s/David W. Peat
David W. Peat
Vice President and Controller
