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To: Rocket Red who wrote (4016)	3/8/1999 8:08:00 AM
From: Mr Metals	Read Replies (1) \| Respond to of 9115

Argentina Gold Corp - Homestake Mining to acquire Argentina Gold Argentina Gold Corp ARP Shares issued 36,654,889 1999-03-05 close $4.8 Monday Mar 8 1999 Mr. Stephen Orr of Homestake Mining reports: Homestake Mining Company and Argentina Gold today announced a definitive agreement for Homestake to acquire the Vancouver-based Argentina Gold Corp. for approximately $200-million (U.S.) ($300-million (Canadian)) in Homestake common stock. Argentina Gold's principal asset is its 60 per cent interest in the Veladero property in northwest Argentina along the El Indio gold belt. Argentina Gold's resource estimate indicates that Veladero's three mineralized zones contain at least 4.5 million ounces of gold and 100 million ounces of silver. In addition to the Veladero project, Argentina Gold's holdings include the promising Del Carmen project and the Rio Frio, Santa Rosa and Vicuna Pampa prospects. Argentina Gold's land package encompasses an entire mining district and covers more than 80 per cent of the rich El Indio gold belt in Argentina. Under the terms of the agreement, Argentina Gold shareholders will receive 0.545 shares of Homestake common stock for each share of Argentina Gold common stock. Based on the closing price for Homestake common stock on Friday, March 5, 1999, the transaction values each Argentina Gold share at $5.14 (U.S.) or $7.81 (Canadian). Homestake will issue approximately 21 million additional shares, which is equal to about 8.8 per cent of Homestake's currently outstanding shares. The transaction will be accounted for as a pooling of interests. Directors of Argentina Gold, representing approximately 15 per cent of currently outstanding Argentina Gold stock, have stated their intention to vote in favour of the transaction. "Argentina Gold and its unique Veladero site, presents a tremendous opportunity for Homestake," said Jack E. Thompson, chairman, president and chief executive officer of Homestake. "Based on recent independent surveys and our own due diligence, we believe that the Veladero property is a superb gold asset with exceptional upside potential. While only 30 per cent of the project area has been explored, the resources defined to date and the consistently favourable metallurgical tests suggest that Veladero's resources could grow significantly. If Veladero meets our expectations, it will develop into a very significant producer at an attractive cash cost. This acquisition strengthens our operating base in South America where we are currently evaluating the feasibility of expanding our operations at La Falda in Chile with ore from the adjacent Jeronimo deposit. It makes Latin America Homestake's fourth growth pillar after the U.S., Canada and Australia without appreciably altering our conservative geopolitical risk profile." Lukas Lundin, director of Argentina Gold stated, "This is an excellent transaction for Argentina Gold's shareholders, representing a full and fair price, and offering the opportunity to participate in the upside of a well managed, international gold producer." "Throughout acquisition discussions, the special committee of the board of directors of Argentina Gold has focused on ensuring that Argentina Gold's shareholders received full value for their shares. Homestake's bid for Argentina Gold is a fair offer that provides excellent value for our shareholders," stated William Rand, director and chairman of the special committee of the directors for Argentina Gold. Homestake and Argentina Gold have agreed to complete the acquisition as a plan of arrangement under the Canada Business Corporations Act. Completion of the transaction is subject to approval by the Argentina Gold shareholders, the British Columbia Supreme Court and further due diligence. The transaction is expected to close in May 1999. Following completion of the acquisition, Homestake will carry out an intense drill program to increase reserves and resources at Veladero. In addition, work will begin to determine optimal design parameters for the mining and processing of ore from this deposit. Homestake expects to spend approximately $6-million for its share of additional drilling and a feasibility study during 1999. Homestake Mining Company is an international gold mining company with operations and exploration activities in the United States, Canada, Australia and Chile. The company also has active exploration programs in Latin America and Eastern Europe. Homestake currently produces approximately 2.3 million ounces of gold annually from 16 operating mines. Shares of the company's stock are listed on the New York Stock Exchange, the Australian Stock Exchange and the Basel, Geneva and Zurich stock exchanges in Switzerland. Homestake began gold mining operations over 120 years ago, and is the oldest listed company on the New York Stock Exchange still in its original business. It has received numerous industry awards for its responsible environmental health and safety management programs. WARNING: The company relies on litigation protection for "forward-looking" statements. (c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com