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
November 4, 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 November 4, 1998, the Registrant issued the following press
release:
[Royal Oak Mines Inc. Press Release Letterhead]
FOR IMMEDIATE RELEASE FROM KIRKLAND, WASHINGTON
November 4, 1998
Royal Oak Issues Shares in Settlement of Certain Accounts Payable
Royal Oak Mines Inc. (TSE and AMEX: RYO) announced that it has issued
7,079,646 common shares to several of its trade creditors in
settlement of accounts payable in the aggregate amount of C$8.0
million. The shares were priced at C$1.13 per share.
The issuance of shares in lieu of cash to settle these accounts
payable improves the Company's liquidity position and its ability to
meet other short-term financial commitments.
Operations at the Company's new Kemess South gold-copper mine in north
central British Columbia are proceeding as planned and the mine is
generating positive cash flow. In mid-October the mine commenced a
second campaign on hypogene ore after concluding a six week campaign
mining and processing supergene ore. Design criteria in both the mine
and concentrator are being met. In September mill availability was
90% and is expected to increase to 94% pursuant to completion of
maintenance work on the tailings pipelines.
Since commencement of production on May 19, 1998 the Kemess South Mine
has produced approximately 51,900 ounces of gold and 15.2 million
pounds of copper contained in concentrates. Concentrates are being
shipped on a regular basis to the Far East for smelting and refining
to recover the contained gold and copper.
The Company continues to work actively with its financial advisors to
refinance its short-term Senior Secured Debentures to a long-term
conventional project finance facility.
Margaret K. Witte, president and chief executive officer of Royal Oak,
said: "We sincerely appreciate the cooperation we have received from
many of our trade creditors who have agreed to take shares in
settlement of their accounts payable. Kemess is shaping up to be a
world class operation, due in part to the high standard of work
performed by the contractors and suppliers in constructing the
facility".
For further information, contact: or in Europe contact:
Investor Relations Mr. David Williamson
Royal Oak Mines Inc. David Williamson Associates
International Investor Relations
Voice mail:425) 822-8992, or 15 St. Helen's Place, 3rd Floor
Facsimile:425) 822-3552, or London, England EC3A 6DE
Web site:http//www.royal-oak-mines.com Telephone: 011-44-171-628-3989
Facsimile: 011-44-171-920-0563
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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: November 4, 1998
By: /s/ James H. Wood
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James H. Wood
Chief Financial Officer
