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
Date of Report (Date of earliest event reported): September 16, 1998
ECHO BAY MINES LTD.
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(Exact name of registrant as specified in its charter)
INCORPORATED UNDER THE LAWS OF CANADA 1-8542 NONE
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(State or other jurisdiction (Commission (IRS Employee
of incorporation) File Number) Identification No.)
6400 SOUTH FIDDLER'S GREEN CIRCLE, SUITE 1000, ENGLEWOOD, CO 80111-4957
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (303) 714-8600
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ITEM 5. OTHER EVENTS
On September 16, 1998, Echo Bay Mines Ltd. (the "Company") announced that, in
light of continued low gold prices, the Company has elected to defer the
interest payment due on October 1, 1998 to holders of its $100 million capital
securities. A Press Release with respect to this matter is included as Exhibit
99.1 hereto and is incorporated herein in its entirety by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
99.1 Press release dated September 16, 1998
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ECHO BAY MINES LTD.
(Registrant)
Date September 22, 1998 By: /S/TOM S.Q. YIP
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Name: Tom S.Q. Yip
Title: Vice President and Controller
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EXHIBIT INDEX
Exhibit
No. Description
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99.1 Press release dated September 16, 1998
EXHIBIT 99.1
ECHO BAY MINES
6400 S. Fiddler's Green Circle Investor Contact: Robbin Lee
Englewood, Colorado 80111-4957 303-714-8829
ECHO BAY CONTINUES DEFERRAL OF CAPITAL SECURITIES INTEREST PAYMENTS
Wednesday, September 16, 1998 - Echo Bay Mines Ltd. (Amex and TSE: ECO)
announced today, that in light of continued low gold prices, the company has
elected to defer the interest payment due on October 1, 1998 to holders of its
$100 million capital securities.
Under the terms of the capital securities, issued in March 1997, the
company has the right to defer interest payments for up to 10 consecutive
semiannual periods. The interest payment due on April 1, 1998 was also deferred.
Interest accrues during the deferral period at the rate of 12% per annum,
compounded semiannually, compared with the 11% face amount payable on the
capital securities.
The next scheduled interest payment date is April 1, 1999. Whether to
continue the deferral period or recommence payment of interest will be decided
prior to that date. At the conclusion of the deferral period, all accrued
interest will be paid in full. At its discretion, the company may satisfy its
deferred interest obligation by delivering common shares to a trustee for sale,
the proceeds of which would be used to pay the deferred interest. The company
has no current plans to deliver shares to the trustee.
Echo Bay mines gold and silver in North America. The primary markets for
its common shares are the American and Toronto stock exchanges.
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