UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-QSB
Quarterly Report under Section 13 or 15(d)of the Securities
Exchange Act of 1934 For Quarterly period ended March 31, 1996
Transaction report under section 13 or 15(d) of the exchange act
For the transition period from to
Commission file number 0-1519
LEADVILLE CORPORATION
(Exact Name or Registrant as Specified in its Charter)
COLORADO 84-0388216
(State of Incorporation) (I.R.S. Employer Identification No.)
2851 S. PARKER ROAD, SUITE 610, AURORA, COLORADO 80014
(Address of Principal Executive Office) (Zip Code)
(303) 671-9792
(Issuer's telephone number)
N/A
(Former name, address and former fiscal year, if changed since
last report)
Check whether the issuer (1) filed all reports required to be
filed by Section 13 reports required to be filed by Section 13
or 15(d) of the Securities Exchange Act during the preceding 12
months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes X No
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and reports
required to be filed by Section 12, 13 or 15(d) of the Exchange
Act after the distribution of securities under a plan confirmed
by a court. Yes No
APPLICABLE ONLY TO CORPORATE ISSUERS
8,953,571
State the number of Shares of the issuer's classes
of common equity, as of the latest practicable date:
Transitional Small Business Disclosure Format (Check one):
Yes No X
LEADVILLE CORPORATION
INDEX TO FINANCIAL STATEMENTS
AND SUPPLEMENTARY INFORMATION
PART I - FINANCIAL INFORMATION Page
FINANCIAL STATEMENTS
Balance sheets 3 - 4
Statements of operations 5
Statements of stockholders' equity 6
Statements of cash flows 7
Notes to financial statements 8 - 12
PLAN OF OPERATION 13
PART II - OTHER INFORMATION
Legal proceedings 14 - 15
Exhibits and reports on Form 8-K 16
-2-
PART I
ITEM 1. FINANCIAL STATEMENTS
LEADVILLE CORPORATION
Balance Sheets
March 31, 1996
(Unaudited)
March 31, December 31,
1996 1995
ASSETS
CURRENT ASSETS
Cash $ 2,462 $ 2,780
Prepaid expenses and other 5,115 7,640
Total current assets 7,577 10,420
PROPERTY AND EQUIPMENT, at cost
(Notes 2 and 3)
Mining properties, including assets
acquired under capital leases 7,356,979 7,356,979
Buildings and equipment:
Mine, including assets acquired
under capital leases 1,219,564 1,219,564
Mill 829,032 829,032
Other 108,143 108,143
Land 22,429 22,429
9,536,147 9,536,147
Less accumulated depreciation and
depletion including amortization
applicable to assets acquired under
capital leases (2,752,317) (2,736,074)
6,783,830 6,800,073
OTHER ASSETS:
Investments - certificates of
deposit 133,000 133,000
Inventories 397,264 408,589
530,264 541,589
$ 7,321,671 $ 7,352,082
-3-
March 31, December 31,
1996 1995
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Related parties: (Note 4)
Convertible debentures (Note 3)$ 531,000 $ 531,000
Notes payable, stockholders (Note 3)528,500 508,500
Accrued interest payable 2,936,352 2,848,489
Due to officers and directors 21,767 6,351
Notes payable-other 100,000 100,000
Accounts payable 311,613 307,324
Accrued expenses 158,049 146,871
Capital lease obligations (Note 3) 755,378 741,824
Total current liabilities 5,342,659 5,190,359
SETTLEMENT OF LITIGATION (Note 3) 100,000 100,000
LONG-TERM DEBT:
Related parties - -
Other - -
COMMITMENTS AND CONTINGENCIES (Note 3)
STOCKHOLDERS' EQUITY
Capital stock, par value $1 per share;
authorized 15,000,000 shares; issued and
outstanding March 31, 1996 and
December 31, 1995, 8,953,571
shares 8,953,571 8,953,571
Additional paid-in capital 8,457,949 8,457,949
17,411,520 17,411,520
Accumulated deficit (15,532,508) (15,349,797)
Total stockholders' equity 1,879,012 2,061,723
$ 7,321,671 $ 7,352,082
See Notes to Financial Statements.
-4-
LEADVILLE CORPORATION
STATEMENTS OF OPERATIONS
Three Months ended March 31, 1996 and 1995
(Unaudited)
Three Months
ended March 31,
1996 1995
Operating revenue $ - $ -
Operating costs and expenses:
General and administrative 61,161 53,678
Depreciation 16,242 212
Total operating expenses 77,403 53,890
Operating loss (77,403) (53,890)
Financial income and expense:
Interest income 1,370 884
Interest expense (106,678) (102,868)
Total financial income
(expense) (105,308) (101,984)
Net loss $ (182,711) $ (155,874)
Net loss per capital
share $ (.02) $ (.02)
Weighted average number of
capital shares outstanding
(total shares) 8,953,571 8,953,571
See Notes to Financial Statements.
-5-
LEADVILLE CORPORATION
STATEMENTS OF STOCKHOLDERS' EQUITY
Three Months ended March 31, 1996
(Unaudited)
March 31, 1996 December 31, 1995
Shares Amount Shares Amount
Capital Stock 8,953,571 $ 8,953,571 8,953,571 $ 8,953,571
Additional
Paid-In Capital 8,457,949 8,457,949
Accumulated deficit,
December 31, 1995 (15,349,797) (15,349,797)
2,061,723 $ 2,061,723
Net Loss,
March 31, 1996 (182,711)
$ 1,879,012
See Notes to Financial Statements.
- 6 -
LEADVILLE CORPORATION
STATEMENTS OF CASH FLOWS
Three Months Ended March 31, 1996 and 1995
1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (182,711) $ (155,874)
Adjustments to reconcile net loss
to net cash provided by (used) in
operating activities:
Depreciation 16,242 212
Change in assets and liabilities:
(Increase) decrease in:
Prepaid expenses 2,525 2,523
Inventories 11,325 -
Increase (decrease) in:
Accounts payable 4,289 1,849
Accrued expenses 11,178 13,534
Officer payables 15,416 13,713
Accrued interest 87,864 82,030
Capital lease obligations 13,554 13,540
Net cash provided by (used
in) operating activities (20,318) (28,473)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowing,
related parties 20,000 30,500
Net cash provided by financing
activities 20,000 30,500
Increase (decrease) in cash and
cash equivalents (318) 2,027
Cash and cash equivalents:
Beginning 2,780 -
Ending $ 2,462 $ 2,027
See Notes to Financial Statements.
-7-
LEADVILLE CORPORATION
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1996
Nature of Business and Significant Accounting Policies:
Nature of Business - Leadville Corporation (the Company) is
engaged in the development and mining of hard rock
mineral properties in Lake and Park Counties, Colorado.
Inventories - Inventories are stated at the lower of cost
(average method) or market value. Inventories consist of
operating and maintenance supplies. In 1995, the Company began
amortizing the carrying value of inventory to
recognize a declining useful life and obsolescence.
Property and Equipment - Mining properties consist primarily of
patented and unpatented mining claims. Mining
properties include the cost of acquisition and accumulated
exploration and development expenditures incurred in the
pre-production stage.
In the event such mining properties are developed into producing
properties, depletion of these related costs will be
computed on the unit-of-production method, based on estimated
tons of recoverable ore reserves. If the properties are
determined to be incapable of producing commercial quantities of
ore, the costs will be charged to operations in the
period in which the determination is made.
The Company provides for depreciation of buildings and equipment
on the straight-line method, to apportion costs over
the estimated useful lives of the assets which range principally
from five to twenty years. During 1995, the Company
began to recognize depreciation on fixed assets which are not in
service in order to recognize the declining useful life
of such assets.
Income Taxes - The Company accounts for income taxes under the
liability method, whereby deferred tax assets and
liabilities are recorded for the expected future tax
consequences of events that have been included in the financial
statements or tax returns. Under this method, deferred tax
assets and liabilities are determined based on the difference
between the financial statements and tax bases of assets and
liabilities using enacted tax rates in effect for the year in
which the differences are expected to reverse.
Net Income (Loss) Per Capital Share - The net income (loss) per
capital share is based on the weighted average number
of shares outstanding during the period. Convertible debt has
not been included in the computation of fully diluted
earnings per share because its effect would be anti-dilutive.
Capitalization of Interest - The Company capitalizes interest
expense as part of the historical cost of acquiring certain
assets which require an extended period of time to prepare them
for their intended use (see Note 3). Subsequent to 1988,
interest has been expensed due to the suspension of development
activities.
Use of Estimates - The preparation of the Company's consolidated
financial statements in conformity with generally
accepted accounting principles requires the Company's management
to make estimates and assumptions that affect the
amounts reported in these financial statements and accompanying
notes. The Company makes significant assumptions
concerning the realizability of its investment in property and
equipment, and the ultimate liabilities associated with
asserted claims (see Note 5). Management believes that the
interim financial statements include all adjustments
necessary in order to make the financial statements not
misleading.
- 8 -
Continuing operations:
At March 31, 1996, the Company has a significant investment in
non-producing mining properties, recovery of which
is dependent upon the production of ore reserves in commercial
quantities or sale of these properties at an amount equal
to or in excess of cost. In addition, the Company has suffered
recurring losses from operations and at March 31, 1996,
has a working capital deficiency of approximately $5,335,000
which includes approximately $4,017,600 due to related
parties. The Company also has significant inventories, which
the Company intends to utilize in the start up and
operation of its mining properties. All real properties are
collateral for convertible debentures. The Company has no
property or liability insurance coverage at March 31, 1996 or
as of the date of this report. The litigation concerning
the environmental matters and certain mining equipment (Note 3)
has made it difficult for the Company to obtain work-
ing capital through additional equity or financing. Working
capital must be obtained to allow for future operations.
The Company has negotiated a decrease in the amount of its EPA
settlement obligation from $3,000,000 to $500,000.
The final form of the agreement is anticipated to be signed in
the near future. In consideration, Leadville has agreed
to allow EPA to use certain dirt and rock materials from
Leadville's property. The Company is continuing its efforts
to lessen the EPA burden on its properties.
The Company believes a substantial portion of the convertible
debentures, notes payable, accrued interest and certain
other obligations may at some future time be converted into
capital shares. Management is continuing to investigate
alternatives to raise additional working capital which will be
required to meet current and future obligations.
If the Company cannot successfully restructure its debt,
satisfactorily resolve its current litigation and obtain
working capital there is substantial doubt about the ability of
the Company to continue as a going concern. The financial
statements do not include any adjustments which might result
from the outcome of these uncertainties.
2. Mining Properties:
At March 31, 1996, the Company owns two mining properties, the
Sherman Hilltop Consolidation and the Diamond-Resurrection
Consolidation.
Activity at the Diamond-Resurrection property, primarily a gold
property, has been suspended since 1989, due to
insufficient cash resources to finance further exploration and
development work.
Since May of 1987 and continuing into 1996, Leadville's
activities at the Sherman Mine, primarily a silver property,
have been limited to care, maintenance and permit related work,
due to continuing low silver prices. During 1985, the
Sherman Mine was placed in temporary cessation due to suspension
of mining activities. During 1995, the temporary
cessation period expired and Leadville will be required to
conduct a program of study, exploration and sampling to
maintain existing regulatory permits. In the event the required
work is not performed, the Company may be required
to reclaim the Sherman Mine site. The Company maintains a
reclamation bond, in the amount of $128,000, which
relates to the Sherman and Stringtown Mill sites.
- 9 -
3. Notes Payable and Convertible Debentures:
The notes payable are summarized as follows:
March 31, December 31,
1996 1995
Notes payable, at 10%, to
stockholders and/or officers/
directors, due dates range from
June 1996 through December 1996.
$ 528,500 $ 508,500
Notes payable-other, at 10% due dates ranging from
April 1996 to December 1996.
$ 100,000 $ 100,000
The above notes payable are convertible to the Company's capital
stock at the option of note holders at conversion prices
of $.80 to $1.00 per share during the term of the notes.
The convertible debentures are summarized as follows:
March 31, December 31,
1996 1995
10% convertible debentures,
interest and principal due December 1996,
convertible to the Company's Capital
Stock at the option of the debenture
holders at a conversion price of $1
per share, collateralized by mining
properties. $ 531,000 $ 531,000
Of the $531,000, $431,000 is due to stockholders. During 1995,
the Company secured extended due dates for the debentures to
December 1996.
3. Commitments and Contingencies:
Lease Commitment Litigation - In December 1988, the Company
sold and leased back certain equipment from an unrelated
entity. Proceeds of $415,000 were recorded as a capital lease
obligation. In addition, the Company leases several other
pieces of mining equipment which are classified as capital
leases. The Company was delinquent on certain of its lease
obligation payments, and the lessor has asserted that the
Company was in default. In January 1991, the lessor won a
summary judgment in the amount of approximately $642,000,
which represents all unpaid past and future
- 10 -
capital lease obligations (including interest). During 1994,
in an appeal, the judgment amount of $642,000 was upheld,
and additional attorneys fees and interest of approximately
$46,000 were awarded the lessor. During the first three
months of 1996, the Company accrued an additional $13,554 of
interest expense on this obligation. During 1992, the
lessor also won a summary judgment for possession of leased
equipment with a net book value of $525,000 and for
interest and penalty charges on the unpaid summary judgments.
The lessor has also asserted that it has a lien on all
the real property of the Company and that this lien should be
foreclosed. The lessor has repossessed approximately
$402,000 of the leased equipment. Approximately $123,000 of
equipment the lessor has not repossessed remains
recorded as an asset of the Company.
Environmental Litigation - The Company has been named as one
of several defendants in certain legal actions involving
environmental matters. The plaintiffs in these actions, the
State of Colorado and the Federal Government, have alleged
that the defendants are liable under the Comprehensive
Environmental Response, Compensation and Liability Act of
1980 (CERCLA) in connection with mining and property ownership
positions in the California Gulch Superfund Site
near Leadville, Colorado.
The Company has answered the complaints and has vigorously
defended the consolidated action. Further, the Company
and litigation counsel believe they have substantial and
meritorious defenses to the claims being made. However, in
an effort to expedite a conclusion and to minimize legal costs,
the Company agreed to a settlement of the cases.
During August 1993, a consent decree was entered by the Federal
District Court in Colorado whereby the United States
agreed to settle the Company's alleged liability, with the
exception of natural resources damages, if any, in consideration
for $3,000,000. Under the original terms of the consent decree,
a total of $250,000 was to be paid by the Company over
15 years, with a contingent liability of $2,750,000 to be paid
based on profitable operations or sale of properties.
Minimum cash payments are to be $10,000 for years 1-5, $15,000
for years 6-10, and $25,000 for years 11-15.
During October 1995, the Company reached agreement, in
principle, with the United States to reduce the consent decree
obligation amount of $3,000,000 to $500,000, with minimum annual
cash payments to begin in April 1996. In effect,
the contingent liability of $2,750,000 was reduced to $250,000.
In consideration, the Company agreed to provide to the
United States certain dirt and rock material for use by the
Environmental Protection agency (EPA) in remedial action
work at the Superfund site. During late 1995, the EPA began to
use the dirt material and the Company's management
anticipates that a final agreement modifying the consent decree
will be signed in the near future. The Company has
accrued a $110,000 environmental settlement liability, which
was the present value of the $250,000 future minimum
payments.
During 1993, the Company initiated a suit against its insurance
company, seeking defense costs of $400,000 and
indemnification of the Company's exposure under the EPA
agreement associated with the environmental litigation
described above. The insurance company counterclaimed for its
previously advanced $65,000 and defense costs. On
May 31, 1994, the court ruled against the Company, and ordered
the Company to repay the $65,000 advanced defense
costs. During 1995, the Company and the insurance Company
settled the obligation for $10,000 and as a result, the
Company recorded an extraordinary gain from settlement of debt
of $53,208.
Contract Mining Litigation - During March 1990, a
subcontractor of the Company filed an action in Lake County
District Court for non-payment of approximately $35,000 for
mining services, plus associated costs. Leadville has filed
a counter-claim against the plaintiff for approximately
$185,000 relating to the same contract. No action has occurred
in the case since 1993 and the Court has ordered a status
report on the issues by August 1996.
Certificates of Deposit - The Company is required by the Mined
Lands Reclamation Board to maintain certificates of
deposit for future reclamation costs. No future reclamation
costs have been accrued as of March 31, 1996.
- 11 -
4. Related Party Transactions:
Certain officers, directors and stockholders have provided
significant loans and advanced expenses to the Company in
recent years. The aggregate indebtedness, including accrued
interest and other payables, amounted to approximately
$4,017,600 at March 31, 1996. Substantially all of that
indebtedness is convertible in the Company's Capital Stock at
a price of $1.00 per share.
The Company leases office space on a month-to-month basis
from an officer for $125 per month. This officer is a
partner in an accounting firm which performs bookkeeping,
accounting and other administrative services for the
Company. As of March 31, 1996, the Company owed the firm
approximately $13,050 for accrued fees and expenses.
5. Income Taxes:
At December 31, 1995, the Company has available tax net
operating loss carryforwards of approximately $8,030,000,
which can be utilized to offset future taxable income.
Utilization of these loss carryforwards may be limited due
to changes in ownership of the Company, and expire from 1997
through 2010.
- 12 -
ITEM 2. PLAN OF OPERATION
The Company earned no operating revenues during 1995 and 1994
and incurred net losses in those years of $670,277
and $684,221, respectively. Management does not anticipate
that any operating revenues will be generated during the
year 1996. The Company's most viable prospect for generating
income from operations is by achieving production at
the Diamond-Resurrection property. The property should be
primarily a gold producer. In order to achieve production
from the Diamond property, the Company must secure
significant financing for further mine development and re-
establish milling capabilities. To date, the prospects for
raising required capital have been complicated by the location
of the Diamond-Resurrection property within the California
Gulch Superfund site. Management of the Company is
continuing its efforts to lift the burden of Superfund from
its properties, including financial obligation reductions and
lifting the Superfund designation from its properties.
Since exhausting its cash reserves in 1989, the Company has met
substantially all of its cash requirements from the
issuance of unsecured promissory notes to officers, directors
and shareholders of the Company. Management anticipates
that such sources of funding will be available during the
remainder of 1996 to meet minimum cash requirements,
although no assurance can be given that this will be the case.
In order to meet debt obligations and satisfy operating
expenses during the course of the next twelve months,
significant cash must be raised from sources outside the
Company.
The Company continues to incur significant interest charges
associated with the outstanding notes and debentures
payable. In addition, the Company is continuing to raise
operating cash through the issuance of notes payable.
Management believes that a substantial amount of the note,
debenture and associated accrued interest obligations will
be converted to Capital Stock by the holders. The holders of
these instruments have the right to convert principal and
accrued interest to Capital Stock at a prices of $.80 to $1.00
per share. Substantially all holders of the notes and
debentures payable are stockholders of the Company.
Leadville intends to use the proceeds from significant
financing to settle existing obligations and to finance an
exploration program on the Diamond properties. The objective
of the exploration program is to identify reserves in addition
to the 700,000 tons already identified at the
Diamond-Resurrection. In anticipation of settling the
environmental litigation, Leadville conducted two studies of
the Diamond property during late 1992 and early 1993. One
study included verification of known mineralization and an
evaluation of mine development. The second study included
surface geo-physics intended to indicate potential exploration
targets. Conclusions of the studies are encouraging and
provide additional evidence that the Diamond-Resurrection
property may hold significant deposits of gold, silver and base
metals.
Full production at the Diamond Mine will require a significant
capital expenditure to acquire surface plant and
underground equipment. Realizing operating revenues from the
Diamond Mine production will require that the
Company re-establish milling capabilities at the Stringtown Mill
site, construct a new milling facility or make other
milling arrangements. No significant capital expenditures are
anticipated to be made until such time as the Company
secures significant financing or participation on the Diamond
properties. Management does not anticipate that there
will be an significant change in the number of Company
employees, until such time as significant financing can be
obtained for the Diamond properties.
In recent months, management has been involved in discussion
with several mining companies who have expressed
preliminary interest in the Diamond-Resurrection and
Sherman-Hilltop properties. To date, no agreements have been
reached. It is management's assessment that financing will be
difficult to obtain until the California Gulch Superfund
site cleanup issues are more clearly defined. Leadville will
continue to press EPA to lift the Superfund designation from
its properties and to lessen the burdens on mining operations
in the Leadville, Colorado area.
Subsequent to March 31, 1996, the Company reached preliminary
agreement with certain of its debt holders to convert
their obligations to Capital Stock.
- 13 -
PART II
Item 1. LEGAL PROCEEDINGS
UNITED STATES (ENVIRONMENTAL PROTECTION AGENCY)
In 1983, Leadville was named as one of several defendants in an
action (United States of America vs. Apache Energy
and Mineral Company, et al) brought by the United States in
Federal District Court in Colorado under the
Comprehensive Environmental Response, Compensation and
Liability Act of 1980 ("CERCLA") in connection with the
approximately 11.5 square mile California Gulch Superfund site
in Lake County, Colorado. In 1986, Leadville was also
named as a third party defendant in a suit (State of Colorado
vs. Asarco, Inc., et al) involving the same site. The cases
were subsequently consolidated.
From 1983 through 1988, Leadville negotiated with the United
States to have its involvement in the consolidated case
dismissed or settled on a de minimis basis. That effort was
ultimately unsuccessful. During the years 1989 and
continuing into 1993, Leadville attempted to negotiate a
settlement of its alleged liability to the United States.
Management believed that financing might be obtained by
Leadville if the claims asserted by the United States were
settled and the financial exposure limited.
During August, 1993, a consent decree was entered by the
Federal District Court in Colorado whereby the United States
agreed to settle Leadville's alleged liability, with the
exception of natural resources damages, if any, in
consideration for $3,000,000. Under the original terms of the
consent decree, a total of $250,000 was to be paid by Leadville
over 15 years, with a contingent liability of $2,750,000 to be
paid based on profitable operations or sale of properties.
Minimum cash payments are to be $10,000 for years 1-5, $15,000
for years 6-10 and $25,000 for years 11-15.
During October 1995, Leadville reached agreement, in principle,
with the United States to reduce the consent decree
obligation amount of $3,000,000 to $500,000, with minimum annual
cash payments to begin in April 1996. In effect,
the contingent liability of $2,750,000 was reduced to $250,000.
In consideration, Leadville agreed to provide to the
United States certain dirt and rock material for use by the
Environmental Protection Agency (EPA) in remedial action
work at the Superfund site. During late 1995, the EPA began to
use the dirt material and Leadville management
anticipates that a final agreement modifying the consent decree
will be signed in the near future.
MINING EQUIPMENT, INC.
During December 1988, Leadville raised financing for operations
through the sale and lease back of certain mining and
milling equipment. In late 1989, due to Leadville's inability
to raise financing, scheduled payments under the agreement
could not be made and the lessor of the equipment sued in the
District Court of Lake County, Colorado to obtain
financial relief and possession of the equipment. (Mining
Equipment, Inc. vs. Leadville Corporation).
In October 1994, Leadville and Mining Equipment, Inc. reached
an agreement to settle the case for $678,000. The
plaintiff has obtained possession of substantially all mining
and milling equipment subject to the lease agreements, with
the exception of the Diamond Mine hoist and certain other
equipment. The plaintiff's right to possession of the hoist
is subordinate to Leadville's debenture holders' first mortgage
position. Plaintiff intends to obtain possession of the
other equipment in 1996.
As of March 31, 1996, Leadville is obligated to Mining
Equipment, Inc. in the amount of $755,378, including accrued
interest. The plaintiff asserts that it has the right to
foreclose on Leadville's properties to satisfy the obligation.
Leadville contests such assertions and, to date, the plaintiff
has not initiated any foreclosure action.
- 14 -
COWIN & COMPANY, INC.
In 1990, Cowin & Company, Inc. Mining Engineers and
Contractors filed suit against Leadville in Lake County,
Colorado District Court asserting that Leadville was
obligated to Cowin & Company, Inc. for approximately $45,000
for contract mining fees. Cowin & Company, Inc. is requesting
damages, equipment possession and general relief
relating to a contract mining agreement entered into March 3,
1987.
Leadville counter-claimed for damages resulting from improper
construction of the Diamond Mine shaft and damages
resulting from Cowin & Company activities at the site. No
action has been taken in the case since October 1993 and
the Court has ordered a Status Report be filed on the matter by
August 30, 1996.
UNITED STATES FIDELITY & GUARANTY COMPANY
During 1993, Leadville filed a lawsuit against its former
insurance carrier seeking to recover defense costs and obtain
indemnification for issues related to environmental litigation.
The insurance company counter-claimed for $65,000 in
defense costs advanced. In May 1994, the Court ruled against
Leadville's claims and awarded the insurance company
the $65,000 in costs advanced. Leadville appealed the decision
and lost. During August 1995, Leadville settled the
insurance company's claim for $10,000 and recorded the residual
judgment amount due as "Extraordinary Gain" on
the Company's Statements of Operations.
- 15 -
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits filed herewith or incorporated by reference to
previous filings with the Securities and Exchange
Commission.
Exhibit
Number Description
(2) Plan of Acquisition, reorganization, arrangement,
liquidation or succession
(3) Articles of Incorporation and By-laws
(4) Instruments defining the rights of security
holders, including indentures
(9) Voting Trust Agreement
(10) Material Contracts
(11) Statement Regarding Computation of Earning Per
Share is not required since the information is
ascertainable from Leadville's financial
statements filed herewith.
(13) Annual Report to security holders, Form 10-Q or
quarterly report to security holders
(16) Letter re: change in accounting principles
(19) Documents not previously filed
(21) Subsidiaries of the Registrant
(22) Published report regarding matters submitted to
vote of security holders
(23) Consents of experts and counsel
(24) Power of Attorney
(27) Financial Data Schedule
(28) Information from reports furnished to state
insurance authorities
(29) Additional Exhibits
___________________
(3) The Articles of Incorporation of Leadville were filed with
its Form 10-K on May 6, 1965; the By-laws of Leadville
were filed with its Report on Form 10-K for the year ended
December 31, 1980.
(4) Filed with Form 10-K for year ended December 31, 1987.
(28) Consent Decree, State of Colorado vs. Asarco, Inc., et al,
Defendants and Third Party Plaintiffs vs. Leadville Corporation,
et al, Third Party Defendants: United States of America vs.
Apache Energy and Minerals Company, et al.
(b) Reports on Form 8-K filed during the Registrant's first
quarter of 1996. NONE
- 16 -
SIGNATURES
Pursuant to the requirements of the Exchange Act, the registrant
has caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
LEADVILLE CORPORATION
(Registrant)
Daniel F. Nibler
Daniel F. Nibler, Vice President,
Secretary-Treasurer, (Principal
Financial and Accounting Officer)
Dated: May 17, 1996
- 17 -<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 2,462
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 7,577
<PP&E> 9,536,147
<DEPRECIATION> 2,752,317
<TOTAL-ASSETS> 7,321,671
<CURRENT-LIABILITIES> 5,342,659
<BONDS> 0
0
0
<COMMON> 8,953,571
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 7,321,671
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 77,403
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 106,678
<INCOME-PRETAX> (182,711)
<INCOME-TAX> 0
<INCOME-CONTINUING> (182,711)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (182,711)
<EPS-PRIMARY> (.02)
<EPS-DILUTED> (.02)
</TABLE>
