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
December 18, 1997
ROYAL OAK MINES INC.
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(Exact name of registrant as specified in its charter)
Commission File Number 1-4350
ONTARIO, CANADA 98-0160821
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(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
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(Address of principal executive offices) (Postal/Zip Code)
(425) 822-8992
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Registrant's telephone number, including
area code
Item 5. Other Events
On December 18, 1997, the Registrant issued the following press release:
[Royal Oak Mines Inc. Press Release Letterhead]
FOR IMMEDIATE RELEASE FROM KIRKLAND
December 18, 1997
Royal Oak Commits to Balance of Funding for Kemess Project
Royal Oak Mines Inc. (TSE and AMEX: RYO) announced today that it executed
commitment letters with a group of institutions who have committed to purchase
US$45 million of Senior Secured Notes to be issued by the Company. The purchase
of these notes is conditional, amongst other things, to satisfactory
documentation and completion of due diligence. The transaction is expected to
close before the end of the year.
The funds from the closing of this transaction will be used to complete the
Company's Kemess project and provide sufficient working capital for the start-up
of the project as well as continued debt service.
Construction of the Kemess gold-copper mine, mill and associated infrastructure
facilities is approximately 82% complete. Approximately C$422 million of the
capital cost of C$430 million has been committed to purchase orders for
equipment and construction contracts. The Company has already received C$130
million from the government of British Columbia, which is current in its
payments.
Average annual production at Kemess over the 16-year mine life is forecast at
approximately 250,000 ounces of gold at an estimated cash cost in current
dollars of US$79 per ounce after copper credits at US$1.00 per pound.
For further information, contact: or in Europe contact:
Mr. J. Graham Eacott Mr. David Williamson
or Mr. Nick Volk David Williamson Associates
Royal Oak Mines International Investor Relations
5501 Lakeview Drive 15 St. Helen's Place, 3rd Floor
Kirkland, WA 98033-7314 London, England EC3A 6DE
Telephone: (425) 822-8992 Telephone: 011-44-171-628-3989
Facsimile: (425) 822-3552 Facsimile: 011-44-171-920-0563
Internet site: http://www.royal-oak-mines.com
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: December 18, 1997 By: /s/ James H. Wood
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James H. Wood
Chief Financial Officer
