-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SLu9W4SZWMKo4Vh0RFu6r2A2+w+r4vvNHubt1mvzECVkmUT7OvqQ40XkgSMYjPIX GeZv7E5IlA+16uoQn6ekRQ== 0000041304-97-000026.txt : 19970709 0000041304-97-000026.hdr.sgml : 19970709 ACCESSION NUMBER: 0000041304-97-000026 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970707 ITEM INFORMATION: Other events FILED AS OF DATE: 19970708 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: ROYAL OAK MINES INC CENTRAL INDEX KEY: 0000041304 STANDARD INDUSTRIAL CLASSIFICATION: GOLD & SILVER ORES [1040] IRS NUMBER: 980160821 STATE OF INCORPORATION: WA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-04350 FILM NUMBER: 97637098 BUSINESS ADDRESS: STREET 1: 5501 LAKEVIEW DR CITY: KIRKLAND STATE: WA ZIP: 98033 BUSINESS PHONE: 4258228992 MAIL ADDRESS: STREET 1: 5501 LAKEVIEW DR CITY: KIRKLAND STATE: WA ZIP: 98033 8-K 1 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 July 7, 1997 ROYAL OAK MINES INC. ------------------------------------------------------ (Exact name of registrant as specified in its charter) Commission File Number 1-4350 ONTARIO, CANADA 98-0160821 - ------------------------------- ------------------------------- (State or other jurisdiction of (I.R.S. Employer Identification incorporation or organization) No.) c/o Royal Oak Mines (USA) Inc. 5501 Lakeview Drive Kirkland, Washington U.S.A. 98033 - ---------------------------------------- ----------------- (Address of principal executive offices) (Postal/Zip Code) (425) 822-8992 Registrant's telephone number, including area code Item 5. Other Events On July 7, 1997, the Registrant issued the following press release: [Royal Oak Mines Inc. Press Release Letterhead] FOR IMMEDIATE RELEASE FROM KIRKLAND July 7, 1997 Blockade to Royal Oak's Kemess Mine Lifted Royal Oak Mines Inc. (TSE and AMEX: RYO) announced today that the blockade on the Finlay Forest Road was lifted last Friday. Equipment and supplies are flowing freely to the Company's Kemess mine site. The blockade, which lasted several days, has not affected the construction schedule. The Kemess Mine is scheduled to commence production in April 1998. Royal Oak announced on June 27, 1997 that it had reached agreement with the provincial government of British Columbia on the terms and conditions of the compensation, investment and economic assistance package that the government is providing. The capital cost of the Kemess project is estimated at approximately C$425 million. The increase from the previous estimate of C$390 million includes all working capital necessary for start-up, payment of higher stumpage fees under the terms of the formal agreement with the provincial government, and design changes to the tailings dam based on geotechnical considerations. The Kemess Mine is scheduled to produce an average of 250,000 ounces of gold and 60 million pounds of copper per year, equivalent to approximately 450,000 ounces of gold and gold equivalents. The average life-of-mine cash cost is estimated to be approximately US$200 per ounce of gold and US$0.50 per pound of copper. Based on current mineable ore reserves, mine life at Kemess is expected to be approximately 16 years. Royal Oak completed the purchase of Kemess in January 1996 for C$202 million and has invested to date an additional C$300 million for a total of C$502 million. The current market capitalization of Royal Oak is approximately C$330 million which is less than the current value of Kemess. The Company currently has approximately C$80 million in its treasury. As a result of the high copper component at Kemess and the strong copper price which has risen over the last year from US$0.85 to approximately US$1.15 per pound, the current depressed gold price has not affected the fundamental economics of the Kemess project. Kemess, combined with the Timmins and Yellowknife operations are scheduled to produce approximately 480,000 ounces of gold and gold equivalent ounces in 1998 at an average cash cost of less than US$240 per ounce. Commenting on the fall in the gold price in the last few days, Margaret K. Witte, President and CEO of Royal Oak, said, "We must be patient during this panic in the gold market and recognize that a substantial amount of production at Kemess will be from copper which has demonstrated increasing price strength over the last twelve months. The cash flow which is expected to be generated from Kemess starting in 1998 indicates significant appreciation in share price can be anticipated. All our shareholders should take this opportunity to increase their holdings." For further information contact: or in Europe contact: Mr. J. Graham Eacott Mr. David Williamson Vice President, Investor Relations David Williamson Associates Limited Royal Oak Mines International Investor Relations 5501 Lakeview Drive 78 Old Broad Street, 2nd Floor Kirkland, WA 98033-7314 London, England EC2M 1QP Telephone: (425) 822-8992 Telephone: 011-44-171-628-3989 Facsimile: (425) 822-3552 Facsimile: 011-44-171-920-0563 SIGNATURE Pursuant to the requirements of Section 12 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. ROYAL OAK MINES INC. Date: July 7, 1997 By: /s/ James H. Wood ----------------------- James H. Wood Chief Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----