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
March 17, 1998
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
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Item 5. Other Events
On March 17, 1998, the Registrant issued the following press release:
[Royal Oak Mines Inc. Press Release Letterhead]
FOR IMMEDIATE RELEASE FROM KIRKLAND
March 17, 1998
Royal Oak in Default of Senior Secured Debentures
Royal Oak Mines Inc. (TSE and AMEX: RYO) announced today that it has notified
the holders of its Senior Secured Debentures that the Company has exceeded the
amount of trade payables over 90 days allowed under the covenants in the Senior
Secured Debentures resulting in a technical default of this covenant. The
provisions of the indentures allow a 20-day "cure period" to enable the Company
to remedy this default. Last night the Company's mechanical contractor
terminated work at the Kemess project as a result of non-payment with
approximately 3-4 weeks of work left for mechanical completion. The project is
currently 92% complete.
In conjunction with its financial advisors, the Company is evaluating a number
of alternatives to fund the completion of construction of the Kemess Mine and to
determine the best course of action to remedy the default. The Company is
currently holding discussions with a number of interested parties.
For further information, contact: or in Europe contact:
Mr. J. Graham Eacott Mr. David Williamson
Vice-President, Investor Relations 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
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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: March 17, 1998 By:/s/ James H. Wood
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James H. Wood
Chief Financial Officer
