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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
(Date of Report)
DECEMBER 17, 1997
COMMISSION FILE NUMBER 0-12207
PEGASUS GOLD INC.
(Exact name of registrant as specified in its charter)
PROVINCE OF BRITISH COLUMBIA NONE
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
601 W. FIRST AVE., SUITE 1500, SPOKANE, WASHINGTON 99201-3282
(Address of principal executive offices) (Zip Code)
(509) 624-4653
(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS.
On December 11, 1997, Pegasus Gold Inc. ("Pegasus") issued a news release
announcing its wholly owned subsidiary, Pegasus Gold Australia Pty. Ltd. has
voluntarily appointed Administrators of that company in Australia. The
appointment of Administrators follows the decision on November 14, 1997 by
Pegasus Gold Inc. to suspend operations and place its Mt. Todd gold mine in
Australia on care and maintenance.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA INFORMATION, AND EXHIBITS.
(a) Financial statements - not applicable.
(b) Pro forma financial information - not applicable.
(c) Exhibits:
(99.1) News Release issued by the Company dated December 11, 1997.
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FORM 8-K
SIGNATURE
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 thereunto duly authorized.
PEGASUS GOLD INC. (Registrant)
Date: December 17, 1997 By: /s/ Phillips S. Baker, Jr.
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Phillips S. Baker, Jr.
Vice President, Finance and Chief
Financial Officer
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EXHIBIT 99.1
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NEWS RELEASE
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PEGASUS GOLD AUSTRALIA
FILES FOR VOLUNTARY ADMINISTRATION IN AUSTRALIA
SPOKANE, WA -DECEMBER 11, 1997 - Pegasus Gold Inc. (PGU -AMEX, TSE, ME) (the
"Company") announced its wholly owned subsidiary Pegasus Gold Australia Pty Ltd
has voluntarily appointed Administrators of that company in Australia. The
Administrators are Peter Geroff and Gregory Moloney of Ferrier Hodgson of
Brisbane. The firm specializes in insolvencies.
The appointment of Administrators follows the decision to suspend operations at
Pegasus Gold Australia's Mt. Todd gold mine, located near Katherine in the
Northern Territory of Australia, and place the mine on care and maintenance
effective November 15, 1997. Pegasus Gold Inc. has concluded that it is not in
the best interests of all stakeholders to continue to fund significant operating
losses of its Australian subsidiary. By suspending operations at Mt. Todd,
along with the appointment of Administrators, the Company is endeavoring to
protect both the Mt. Todd assets and the funds advanced by the Company to
Pegasus Gold Australia, pending the determination of restructuring proposals.
The Administrators have advised that under Australian law they are required to
provide Pegasus Gold Australia's creditors with a report about its business,
property, affairs and financial circumstances as well as their recommended
course of action.
Mr. Peter Geroff, one of the Administrators, and a partner in the specialist
insolvency firm of Ferrier Hodgson said "the intention of the Administrators
while performing a review of the whole of Pegasus Gold Australia operations, is
to continue to keep all stakeholders fully informed, including the current
employees of the Pegasus Gold Australia as well as the Jawoyn people (the
traditional Aboriginal owners of the land upon which the Mt. Todd Mine is
situated) with whom the Company has always had an excellent relationship."
"After that review," Mr. Geroff continued, "the Administrators will discuss
proposals with creditors of Pegasus Gold Australia, and liaise with Pegasus Gold
Inc. and its banking group."
Statements in this release which are not historical data are forward looking and
involve a number of risks and uncertainties, including but not limited to the
price of gold and other commodities and currencies, production, construction and
permitting or regulatory delays, reserve estimation of tonnage, grade and
metallurgical recoveries, exploration success and reserve growth, litigation,
capital costs, and other risks that are detailed in the Company's SEC filings.
Pegasus Gold Australia Pty Ltd is a wholly owned subsidiary of Pegasus Gold
Inc., an international gold mining company headquartered in Spokane, Washington.
Pegasus, a Canadian company by incorporation, currently produces about 500,000
ounces of gold from operations in North America as well as Australia. The
Company carries out exploration internationally through offices located in
Mendoza, Argentina; Kalgoorlie, Australia; Itaituba, Brazil; Santiago, Chile;
and Panama City, Panama. The common shares of Pegasus are traded under the
symbol PGU on the American, Toronto and Montreal stock exchanges. Options on
the Company's common shares are traded on the Chicago Board Options Exchange and
the Montreal Exchange.
FOR FURTHER INFORMATION, REGARDING:
PEGASUS GOLD INC.
John W. Pearson
Vice President, Investor and Public Relations
509-624-4653
