SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 and 15(d) of the
Securities Exchange Act of 1934
Date of Report (date of earliest event reported): November 25, 1997
CRESTED CORP.
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Exact Name of Registrant as Specified in its Charter)
WYOMING 0-8773 83-0608126
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(State or other (Commission (I.R.S. Employer
jurisdiction of File No.) Identification No.)
incorporation)
Glen L. Larsen Building
877 North 8th West
Riverton, WY 82501
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (307) 856-9271
NOT APPLICABLE
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(Former Name, Former Address or Former Fiscal Year,
if Changed From Last Report)
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ITEM 5. Other Events
The registrant and its parent U.S. Energy Corp. ("USE") and Plateau Resources
Limited entered into a letter of intent with an underwriter to raise sufficient
funds to acquire Kennecott Uranium Company's interest in the uranium joint
venture known as the Green Mountain Mining Venture ("GMMV"). This letter of
intent is to comply with a condition of the June 23, 1997 Acquisition Agreement
("Agreement") between Kennecott and registrant, USE and its subsidiaries, which
required the delivery of such letter of intent by December 1, 1997 so that the
$4,000,000 advanced to registrant and USE by Kennecott on June 23, 1997, would
be nonrefundable. Pending the closing of the Agreement, Kennecott is advancing
up to an additional $16,000,000 to the GMMV to compensate registrant and USE in
running two declines at GMMV's underground Jackpot uranium mine on the south
side of Green Mountain in south-central Wyoming; completing the Mine's
infrastructure, and to perform various work in obtaining an operating license
for GMMV's nearby 3,000 ton per day uranium mill.
As previously reported on Form 8-K and in registrant's Form 10-K for fiscal year
ended May 31, 1997, the Agreement permitted the registrant and USE, in lieu of
closing the transactions under the Agreement by December 1, 1997, to obtain by
that date a letter of intent from a recognized investment banking firm to
complete an underwritten public offering of the registrant's securities (or of
the securities of an entity formed by the registrant and USE to acquire
Kennecott's interest in the GMMV), in an amount sufficient to close the
Agreement transactions (estimated by the registrant at approximately $40
million). This letter of intent in effect allows the registrant and USE, as
contemplated and permitted by the Agreement, until October 30, 1998 to close the
Agreement transactions.
Final terms of the financing, including the total funds to be raised (which
would close the Agreement transactions and provide working capital for mine and
mill work), the identification of the issuer of the securities to be sold to
raise the financing, the percentage ownership of such issuer by the registrant,
USE and its affiliated companies, and other terms, have not been agreed upon as
of the date of this Form 8-K Report. Such final terms and the expected timing of
the financing will be set forth in a registration statement which is anticipated
to be filed in connection with the financing in the first calendar quarter of
1998.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CRESTED CORP.
Dated: December 9, 1997 By: /S/ DANIEL P. SVILAR
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Daniel P. Svilar, Secretary
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