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
May 15, 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
<PAGE>
Item 5. Other Events
On May 15, 1998, the Registrant issued the following press release:
[Royal Oak Mines Inc. Press Release Letterhead]
FOR IMMEDIATE RELEASE FROM KIRKLAND
May 15, 1998
Royal Oak Reaches Agreement for Consents with the Majority of the Holders
of its US$175 million Senior Subordinated Notes
Royal Oak Mines Inc. (TSE and AMEX: RYO) announced today that it
has reached agreement with the majority of the holders in the
aggregate amount of its US$175 million Senior Subordinated Notes.
As a result, consents acceptable to the senior lenders will be
delivered to the Company. The Company now plans to proceed with
finalizing arrangements to draw down funds under the terms of the
previously announced US$120 million Senior Secured Notes facility.
Terms of the consents include a 6.4% fee payable to the Senior
Subordinated Note holders by the issuance of treasury shares of
the Company at a price of US$1-1/8 per share; an adjustment in the
coupon rate of the Senior Subordinated Notes from 11% to 12-3/4% per
annum; and the issuance of security subordinate to the Senior
Secured Notes. The Company will be granted the ability to redeem
the Senior Subordinated Notes immediately.
Net proceeds received on drawdown of funds will be used to repay
the Company's existing US$44 million Senior Secured Debentures,
bring the Company's accounts payable up to date, and provide
sufficient working capital through start-up of the Kemess Mine.
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
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: May 15, 1998 By: /s/ James H. Wood
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James H. Wood
Chief Financial Officer
