Homestake Closes the Final Tranche of $1.6 Million Equity Financing

Homestake Closes the Final Tranche of $1.6 Million Equity Financing 
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/31/13 -- Homestake
Resource Corporation ("Homestake") (TSX VENTURE:HSR)(FRANKFURT:B6IH)
has closed the final tranche of its previously reported non-brokered
private placement by issuing 500,000 units at a price of $0.15 per
unit for gross proceeds of $75,000. Each unit consists of one common
share and one share purchase warrant exercisable to purchase one
additional common share for a period of two years at a price of $0.20
per share. The Company closed the first tranche of the private
placement on December 28, 2012 by issuing 4,852,500 flow through
units at a price of $0.20 per unit and 4,012,334 non-flow through
units at the price of $0.15 per unit to raise an aggregate of
$1,572,350. 
Securities issued pursuant to this tranche of the private placement,
including common shares, share purchase warrants and finders'
warrants issued as finders' fees, carry a legend restricting trading
of the securities until June 1, 2013. The private placement and
payment of finders' fees are subject to regulatory approval. 
Net proceeds from the offering will be utilized to fund continued
exploration at the Company's Kinskuch property, as well as general
corporate activities. The 623-square-kilometre Kinskuch property is
located immediately to the east and south of the Company's Homestake
Ridge project, where Agnico Eagle Mining Limited has assumed project
management. The Company holds an option to acquire a 100% interest in
Kinskuch and the Company's diamond drilling program at the Illiance
River target on the Kinskuch property during 2011 was successful in
intersecting high-grade silver/lead/zinc VMS mineralization in three
of four holes. For example, hole KN11-02 intersected several
mineralized zones with the strongest being 2.8m of 318g/t Ag and 8.7%
combined lead and zinc; true thickness is uncertain at this time.
Surface soil and rock-chip sampling, combined with geophysical data
from the Company's 2011 airborne program, has extended mineralization
to a 4.5 kilometre strike length. The Company's recently completed
financing will allow the Company to begin aggressively exploring this
trend in 2013, beginning with drill holes that will offset the 2011
mineralized holes. 
The Company also announces the resignation of Scott Hean as a
director and member of the Audit Committee effective December 31,
2012. Fred Sveinson, a director of the Company, has been appointed as
a member of the Audit Committee. Homestake's Board of Directors
wishes to thank Mr. Hean for his efforts on behalf of the company and
wishes him well in his future endeavours. 
About Homestake  
Homestake is a mineral resource exploration and development company
that owns direct and indirect interests in prospective mineral
properties. 
Homestake Ridge Project 
Homestake owns a 100 percent interest in the Homestake Ridge project,
located in the Kitsault Mineral District in northwestern British
Columbia. The project is being advanced as a potential high-grade
underground mining operation. At a 3.0g/t AuEq cut-off and based on
drilling completed through 2010, the project contains an estimated
NI43-101 compliant Indicated Resource of 191,000oz gold and 1,350,000
oz silver (215,500oz AuEq) plus an Inferred Resource of 530,000 oz
gold and 13,470,000oz silver (775,900oz AuEq)(1) at the Main
Homestake and Homestake Silver deposits. A third deposit was
discovered at South Reef late in 2011 and was expanded with drilling
in 2012, but mineralization there has not yet been included in
resource estimates. To date, 251 holes were drilled for a total of
70,533 metres, and multiple exploration targets remain to be tested
on the large 2585-hectare property. Agnico-Eagle Mines Limited has
assumed project management under an option agreement to fund
exploration and development costs of $25.3 million over a 5-year
period to earn a 65% interest in the property and has spent $1.8
million in funding operations in 2012 together with a purchase of 20
million shares of Homestake at a price of $.35 per share. Exploration
expenditures under the option agreement for 2013 are $3.5 million.  
Kinskuch Project 
Homestake holds an option to acquire a 100% interest in the
623-square-kilometre Kinskuch project, located adjacent to, and to
the southeast of, the Homestake Ridge project. Diamond drilling along
the Illiance trend on the Kinskuch property during 2011 was
successful in intersecting high-grade silver/lead/zinc VMS
mineralization in three of four holes. Surface soil and rock-chip
sampling along the trend in 2012 extended mineralization to a 4.5
kilometre strike-length; Homestake will be aggressively exploring
this trend in 2013. 
Nevada Projects 
Homestake owns a 10.19 percent equity interest in Bravada Gold
Corporation (TSX.V-BVA). Bravada is exploring and developing numerous
gold/silver projects in several of Nevada's prolific gold belts,
including the past-producing Wind Mountain project in the Walker Lane
Gold belt and the past-producing Quito project in the Austin Gold
belt. At the advance-stage Wind Mountain project, an independent
engineering firm has calculated a 43-101-compliant resource estimate
and demonstrated a positive PEA for an open-pit/heap-leach operation.
Bravada is currently conducting additional exploration at Wind
Mountain under a funding and option agreement with Argonaut Gold
Corporation. 
Robert Macdonald (P.Geo) is the Qualified Person as defined by
National Instrument 43-101 for the Homestake Ridge project and has
reviewed and approved the technical contents of this release.  
ON BEHALF OF THE BOARD 
Joseph A. Kizis Jr., President and Director 
(1) AgEq - is calculated using the approximate three-year trailing
average for the precious and base metals. Ag-$23, Au-$1350,-Cu-$3.50,
Pb-$0.95 and Zn-$0.85. The AgEq calculation does not account for
relative metal recoveries, which are unknown at this time. 
This news release may contain forward-looking statements including
but not limited to comments regarding the timing and content of
upcoming work programs, geological interpretations, receipt of
property titles, potential mineral recovery processes, etc.
Forward-looking statements address future events and conditions and
therefore involve inherent risks and uncertainties. Actual results
may differ materially from those currently anticipated in such
statements. These statements are based on a number of assumptions,
including, but not limited to, assumptions regarding general economic
conditions, interest rates, commodity markets, regulatory and
governmental approvals for the company's projects, and the
availability of financing for the company's development projects on
reasonable terms. Factors that could cause actual results to differ
materially from those in forward looking statements include market
prices, exploitation and exploration successes, the timing and
receipt of government and regulatory approvals, and continued
availability of capital and financing and general economic, market or
business conditions. Homestake Resource Corporation does not assume
any obligation to update or revise its forward-looking statements,
whether as a result of new information, future events or otherwise,
except to the extent required by applicable law. 
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release. 
Contacts:
Homestake Resource Corporation
Liana Shahinian
1-888-456-1112 or 604-641-2773
liana@mnxltd.com
www.homestakeresource.com
 
 
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