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 25, 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 25, 1998, the Registrant issued the following press release:
[Royal Oak Mines Inc. Press Release Letterhead]
FOR IMMEDIATE RELEASE FROM KIRKLAND
March 25, 1998
Royal Oak Obtains US$120 Million of Financing
Kemess Mine to be Completed
Royal Oak Mines Inc. (TSE and AMEX: RYO) announced today that it has
obtained US$120 million to refinance and fund the completion of the
Company's Kemess Mine. The financing is in the form of Senior Secured
Notes arranged by Trilon Financial Corporation of Toronto, Ontario and
is subject to various approvals and completion of customary
documentation.
Margaret K. Witte, President and Chief Executive Officer of Royal Oak,
said, "We welcome Trilon's financial assistance, which will enable us to
complete the development of the Kemess Mine. We are pleased to be
working with a financial group with substantial experience in the
Canadian mining industry."
The debt issue will enable Royal Oak to overcome its short-term
liquidity problems. The net proceeds will be used to complete the
construction of the Company's Kemess gold-copper project in north
central British Columbia; repay the Company's existing US$44 million
Senior Secured Notes; and provide sufficient working capital through
project start-up. The transaction is expected to close in mid-April.
Construction of the Kemess Mine is over 92% complete. The Kemess
property hosts a total resource of approximately 6.1 million ounces of
gold. The average annual life-of-mine production is expected to be
approximately 250,000 ounces of gold at an estimated cash cost of US$128
per ounce, net of copper credits at current prices.
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 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 25, 1998 By: /s/ James H. Wood
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James H. Wood
Chief Financial Officer
