SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT UNDER TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported): APRIL 16, 1997
Commission File Number: 0-10104
LA TEKO RESOURCES LTD.
(Exact Name of Registrant as Specified in its Charter)
BRITISH COLUMBIA 87-0483319
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
625 HOWE STREET, SUITE 500
VANCOUVER, B.C. V6C 2T6
(Address of Principal (Zip Code)
Executive Offices)
Registrant's Telephone Number, including Area Code:
(604) 688-0833
NOT APPLICABLE
(Former name, former address, and formal fiscal year, if changed since
last report)
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ITEM 5: OTHER EVENTS
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On April 16, 1997, La Teko Resources Ltd. (the "Company") reported record
earnings for the fiscal year ended December 31, 1996. The Company reported net
income of $0.04 per share compared with a loss in the prior year. The Company
has not received operating revenues during any of the last three years; however,
other income showed a gain of 76.9%, to $2,447, 248 for 1996 as compared to
$1,383,000 in 1995. This is a result of the $2.5 million received from Newmont
Exploration, Ltd. ("Newmont") in 1996 as the final payment for Newmont's
acquiring a 65% interest in the Company's True North property. During 1995, the
Company reported a gain of $1,383,546 applicable to the receipt of $3.5 million
from Newmont. Management of believes that the Company is in a very strong
position compared with its peers, as it is debt-free with approximately $2.2
million in the bank.
As Newmont commenced its 1997 drilling program on the True North property, it
announced assay results from a drill hole completed late last year. Drill hole
#568 encountered a high grade extension to the Zeppelin Zone. The hole
intersected a gold mineralized zone of 75 feet, believed to be very close to
true thickness, with an average grade of 0.377 oz. Au per ton. The Company
believes that this is one of the highest grade holes yet drilled on the property
and opens up a promising extension of the Zeppelin to the southwest. This is
both higher grade and thicker than most of the previous intercepts on the
property, demonstrating the potential of these new zones to potentially increase
reserves. In early 1996, the Company announced a total reserve potential of
over 2,000,000 ounces of gold for the True North property based on 1995 drilling
results.
The True North property is located 16 miles northeast of Fairbanks, Alaska. The
Company has received $6 million in cash payments from Newmont which is earning a
75% interest in the True North property. No further cash payments to the Company
are required by the agreement. Newmont must now complete a feasibility study
which recommends placing the property into production and spend the first $21
million in exploration and development costs.
The Company is a gold exploration company active in the Fairbanks Mining
District of Alaska. The Company holds two projects in the advanced exploration
to development, the True North and Ryan Lode, and several early stage
exploration projects. Over 90% of the shares of the Company are held by US
citizens.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in U.S. Dollars)
YEARS ENDED DECEMBER 31,
1996 1995 1994
--------- ----------- ------------
INCOME
Sales of gold and silver $ -- $ -- $ --
EXPENSES
Operating and mine
maintenance costs 275,623 151,179 234,362
New prospect evaluation 55,708 36,741 --
General and administrative
expenses 956,413 674,550 695,203
Depreciation 54,828 51,092 57,348
Royalty and lease 150,000 286,901 241,246
---------- --------- ---------
1,492,572 1,200,463 1,228,159
---------- --------- ---------
Income (loss) from
operations (1,492,572) (1,200,463) (1,228,159)
OTHER INCOME (EXPENSE)
Gain on sale of mineral
property 2,447,248 1,383,436 --
Abandonment of mineral
property -- (454,305) --
Gain on sale of investment -- -- 5,180
Interest income (expense)
(net) 7,687 (61,021) (125,088)
Gain (loss) on sale of
equipment 7,969 (8,132) (18,852)
Other -- (1,872) (2,892
---------- --------- ---------
Income (loss) before taxes 970,332 (342,357) (1,369,811)
Provision for income tax
expense (benefit) 14,547 22,500 --
---------- --------- ---------
Net income (loss) $ 955,785 $ (364,857) $(1,369,811)
========== =========== ===========
Income (loss) per share $ 0.04 $ (0.02) $ (0.06)
========== =========== ===========
Weighted average shares
outstanding 23,732,008 23,183,057 21,967,856
CONSOLIDATED BALANCE SHEETS
(Expressed in U.S. Dollars)
YEARS ENDED DECEMBER 31,
1996 1995
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ASSETS
Current assets:
Cash and short-term deposits $ 3,041,205 $ 2,972,278
Accounts receivable 15,918 124,876
Inventories 6,295 6,295
Prepaid expenses 200,845 176,541
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3,264,263 3,279,990
Mineral properties and deferred
costs 10,515,140 10,155,234
Plant and equipment 210,716 204,589
Investments 500,913 231,069
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$14,491,032 $13,870,882
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LIABILITIES
Current liabilities
Accounts payable and accrued
expense $ 194,718 $ 240,441
Current portion of long-term debt 372,500 712,296
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Total current liabilities 567,218 952,737
Long-term debt -- 360,289
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567,218 1,313,026
SHAREHOLDERS' EQUITY
Common capital stock, no par
value; 100,000,000 shares
authorized; 23,457,258 shares
issued and outstanding (1995:
23,318,478) 18,217,342 17,807,169
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Accumulated deficit (4,293,528) (5,249,313)
----------- -----------
13,923,814 12,557,856
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$14,491,032 $13,870,882
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SIGNATURES
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Pursuant to the requirements of section 13 or 15(d) of the Securities
Exchange of 1934, as amended, the Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
LA TEKO RESOURCES LTD.
Dated: April 24, 1997 By /s/Gerald G. Carlson,President
