SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
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): AUGUST 27, 1997
NORTH LILY MINING COMPANY
(Exact name of registrant as specified in its charter)
UTAH 0-16740 87-01593350
(State or other jurisdic- (Commission File (IRS Employer
tion of incorporation) Number) Identification No.)
1800 GLENARM PLACE, SUITE 210, DENVER, COLORADO 80202
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (303) 294-0427
NOT APPLICABLE
(Former name or former address, if changed since last report)
Exhibit index on consecutive page 2 Page 1 of 4 pages
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ITEM 1. CHANGES IN CONTROL OF REGISTRANT.
Not Applicable
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS.
Not Applicable
ITEM 3. BANKRUPTCY OR RECEIVERSHIP.
Not Applicable
ITEM 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANTS.
Not Applicable
ITEM 5. OTHER EVENTS.
Pursuant to General Instruction F to Form 8-K, the
registrant hereby incorpo rates by reference the
information contained in the news release, a copy of
which is filed as an exhibit to this report.
ITEM 6. RESIGNATIONS OF REGISTRANT'S DIRECTORS.
Not Applicable
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(a) Financial statements of businesses acquired:
Not applicable
(b) Pro forma financial information:
Not applicable
(c) Exhibits:
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REGULATION CONSECUTIVE
S-K NUMBER DOCUMENT PAGE NUMBER
<S> <C> <C>
20.1 News Release dated August 27, 1997 4
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ITEM 8. CHANGE IN FISCAL YEAR.
Not Applicable
ITEM 9. SALES OF EQUITY SECURITIES PURSUANT TO REGULATION S.
Not applicable.
Page 2 of 4 pages
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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.
NORTH LILY MINING COMPANY
Date: August 28, 1997 By:/S/STEPHEN E. FLECHNER
Stephen E. Flechner
President
08-27-97.8-K
Page 3 of 4 pages
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N E W S R E L E A S E
[NORTH LILY MINING COMPANY LETTERHEAD]
NASDAQ: NLMC AUGUST 27, 1997
FEASIBILITY STUDY ANNOUNCED FOR TUINA COPPER PROJECT
At North Lily Mining Company's Tuina, Chile copper project, Yuma Copper Corp.
has announced completion of a feasibility study. Bateman Engineering of Tucson,
Arizona conducted the study in association with New Baron Leveque Inc. (NBLI) of
Belgium, and Parsons of Pasadena, California. The study outlines the plans for
the construction and operation of a 12,000 metric tonne per year solvent
extraction-electrowinning (SX-EW) project. Though basic engineering and final
design remain to be completed, Yuma states that the feasibility study has
considered the ore reserves, processing, environmental considerations, and
infrastructure to a level suitable for bankable project financing.
Yuma's news release of August 1, 1997 reports that cash flow calculations
indicate an internal rate of return of 25.6% and a net present value of $16.6
million using $1.00 per pound copper, project life of six years, and current
reserves. The plant and associated infrastructure could be developed for $US33.7
million including owner's costs. Cash costs for the production of copper are
estimated at $US.53 per pound of copper.
Extensive analysis of the ore reserves at Tuina conducted by MINTEC of Tucson,
Arizona has defined proven/probable (80%/20%) reserves of 9.36 million tonnes
averaging 1.12 % total copper. The overall stripping ratio has been calculated
at 1.72. Potential for expanding reserves and thereby extending the project life
is reported to be excellent.
Meanwhile, upon Yuma's closing of its acquisition of International Mahogany's
majority interest in Tuina and related cost sharing arrangements among the
parties, North Lily has the right to participate in the development and mining
of Tuina by funding its 26% share of the project's capital costs. North Lily's
participating share of cash flow would then be about $9.2 million with a net
present value of about $4.15 million based on $1.00 copper, current reserves and
the six year mine life as projected in the feasibility study. Alternatively,
North Lily also has the right to convert its 26% working interest into a 10% net
profits interest. In connection with this determination, North Lily is currently
reviewing assumptions and contingencies in the feasibility study, and pursuing
discussions with Yuma and Mahogany to clarify existing agreements and enter into
a joint operating agreement.
For further information, please contact Steve Flechner or Gene Webb at (303)
294-0427.
Page 4 of 4 pages
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