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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
MARCH 15, 1999
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. 98033-7314
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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 15, 1999, the Registrant issued the following press release:
[Royal Oak Mines Inc. Press Release Letterhead]
FOR IMMEDIATE RELEASE FROM KIRKLAND, WASHINGTON
MARCH 15, 1999
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ROYAL OAK CLARIFIES NEWSPAPER ARTICLES
ROYAL OAK MINES INC. (TSE: RYO) wishes to respond to articles that appeared in
Canadian national newspapers this weekend to clarify facts related to payments
made on two insurance policies and on an equipment operating lease.
Royal Oak submitted two cheques to Sun Life of Canada to cover insurance
premiums for extended benefits for all company employees, who number over 1000
persons, after Sun Life threatened to cancel the policy. Subsequently, Trilon
Financial Corporation, a major creditor of the Company asked Royal Oak, to stop
payment on the cheques. Payments were stopped on March 11, 1999. Royal Oak's
employees' extended benefits are therefore not currently covered by insurance.
Royal Oak also submitted a cheque to Pacific Life for insurance premiums, which
were due under a life insurance plan for senior executives. There is no
immediate benefit to any of the executives named in this life insurance plan.
Royal Oak requested Pacific Life to refund the premium. Two refund cheques were
received from Pacific Life on March 12, 1999.
The third payment concerns an operating lease on the shovel and drill at the
Company's Kemess South Mine. The Company wired the payment to Trilon Bancorp
Inc. after Trilon Financial Corporation threatened to remove the equipment from
the mine site. This action would have brought production at the mine to a halt.
Royal Oak requested Trilon to refund the payment. The refunded payment was wired
into Royal Oak's bank account on March 11, 1999.
Royal Oak wishes to emphasize that all three payments were included in the
Company's operating budget that was presented to Trilon and the Court-appointed
Monitor, PriceWaterhouseCoopers LLP. Payments for the three above-mentioned
items were covered under the $8.4 million working capital advance that was to
have been immediately provided to the Company by Trilon pursuant to the Company
obtaining protection from its creditors on February 15, 1999. Problems with the
timing of these payments arose only because the Company has not received the
full amount of the advance. Actions taken by the Company in making the above
three payments were in accordance with the budget previously submitted to Trilon
and the Monitor and were not the result of any wrongdoing. Management believed
it was acting in good faith and in the best interests of the Company and its
employees to maintain operations and preserve values for the benefit of all
stakeholders.
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: March 15, 1999 By: /s/ M.K. Witte
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M.K. Witte
President and CEO
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