In June of 1877, George Hearst sent L.D. Kellogg, an experienced practical miner, to investigate claims of new gold discoveries. After a brief investigation, Kellogg optioned the Homestake and Golden Star Claims for $70,000. George Hearst and his partners incorporated their holdings as The Homestake Mining Company in California on November 5, 1877, almost 12 years to the day South Dakota was admitted to the Union.

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