CONTACT: Mark Johnston at 605-773-3212

 

PIERRE, S.D. – Gov. Mike Rounds announced today that he, Dave Bozied, Chairperson of the South Dakota Science and Technology Authority (Authority) and Patrick Garver, Executive Vice President and General Counsel of Barrick Gold Corporation have signed an agreement  that transfers the Homestake gold mine in Lead, SD to the Authority. 

 

“This is a very, very special day for South Dakota, and the citizens of Lead,” said the governor on the announcement. “I would like to thank Homestake Mining Company for the generous donation of the mine, and sharing in our vision to create an underground science laboratory at the Homestake Gold Mine in Lead. This agreement could not have happened without the hard work of a lot of individuals.” 

 

On September 19, 2005, an agreement in principle had been reached between Homestake Mining Company, a wholly-owned subsidiary of Barrick Gold Corporation, and the Authority. This agreement allowed the authority to take possession of certain mine property located in Lead, and create a mid-level science and engineering laboratory 4,850 feet below the earth’s surface. Today’s signing culminated months of negotiation between Homestake and the Authority.

 

Homestake will turn over the laboratory property to the Authority on or before May 30. 

 

“We congratulate Gov. Rounds and the Authority for their vision  and leadership,” said Patrick Garver, Executive Vice President and General Counsel of Barrick Gold Corporation.  “This agreement reflects a collective determination to move forward and make progress.  The mine served as a cornerstone of the economy in western South Dakota for more than 125 years and we are pleased to be a part of what could well become a substantial new endeavor to benefit South Dakota's future.”

 

In October of 2005, the governor called a special session of the South Dakota Legislature to appropriate $19.9 million from the state’s general fund for the development, construction, acquisition, improvement, maintenance and operation of a laboratory facility. The legislature voted almost unanimously to support the governor’s recommendation. 

 

The Authority estimates that the budget for the Interim Laboratory, including capital requirements and operating expenses through the year 2012, will be approximately $32.1 million. The Authority

controls, or has access to, approximately $44 million that could be committed to this purpose. Some of the immediate expenditures include $800,000 for the closure fund to close the mine, $2.5 million in insurance premiums, and $10 million for the indemnification fund.

 

The National Science Foundation (NSF) announced in July of 2005, for the second time, the selection of Homestake as one of two sites to receive $500,000 for development of a conceptual design for the Deep Underground Science and Engineering Laboratory (DUSEL). 

 

“We want the National Science Foundation (NSF) to pick South Dakota’s Homestake Mine for the Deep Underground Science and Engineering Lab (DUSEL) because we want the jobs & economic impact it will create in SD, and we want the wonderful science education opportunities it will create for our students,” said the governor.

 

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