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 23, 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 December 23, 1998, the Registrant issued the following press release:
FOR IMMEDIATE RELEASE FROM TORONTO, CANADA
December 23, 1998
Royal Oak to Restructure Debt
Royal Oak Mines Inc. (TSE and AMEX: RYO) today announced that it will seek to
restructure its existing senior debt agreements to achieve greater financial
flexibility and a stronger balance sheet in light of historically low
commodity prices for gold and copper.
"The Company and its advisors believe this restructuring can be negotiated on a
consensual basis," said Margaret K. Witte, President and Chief Executive
Officer. "Low commodity prices are reducing cash flow available to service
existing debt. This requires that existing interest and principal repayment
terms be amended to reflect current circumstances."
The Company has established a deadline of February 15, 1999, to renegotiate the
terms of its US$120 million of short-term senior secured debentures,
approximately US$26 million in commodity hedge debt, US$175 million of
secured notes and Cdn.$19.5 million of equipment loans from the Export
Development Corporation. Interest and principal payments on this outstanding
debt will be deferred by the Company until February 15.
"There will be no impact on day-to-day operations", said Ms. Witte. "Trade
creditors will be paid in the normal course."
Royal Oak Mines is a major North American gold mining company, which together
with its predecessors, has produced more than 50 million ounces of gold over a
60-year period. The Company owns and operates the Kemess South Mine in north
central British Columbia; the Giant Mine at Yellowknife in the Northwest
Territories; and the Pamour and Nighthawk mines near Timmins in Ontario. In
September 1997, Royal Oak closed its Hope Brook Mine in Newfoundland after
depletion of ore reserves, and in December 1997, the Company closed its high
cost Colomac Mine in the Northwest Territories for economic reasons. Both
facilities have been placed on care and maintenance.
For further information, contact:
J. Patrick Howe
Howe & Company Inc.
(416) 863-6632
E-mail: [email protected]
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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: December 23, 1998 By: /s/ James H. Wood
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James H. Wood
Chief Financial Officer
