SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Form 8-K
Current Report Pursuant to Section 13 or 15(d) of The Securities
Act of 1934
Date of Report (date earliest event reported): October 23, 1996
Mallon Resources Corporation
(exact name of registrant as specified in its charter)
Colorado 0-17267 84-1095959
(State or other (Commission (I.R.S. Employer
jurisdiction File Number) Identification No.)
of incorporation)
999 18th Street, Suite 1700, Denver, Colorado 80202
(address of principal executive offices) (zip code)
Registrant's telephone number, including area code: (303)293-2333
not applicable
(former name or former address, if changed since last report)
-1-
Item 5. Other Events
Mallon Resources Corporation (the "Company") issued a press
release, dated October 23, 1996, the text of which was as
follows:
Mallon Oil Company, a unit of Mallon Resources Corporation
(Nasdaq: "MLRC"), reported that it has purchased and retired all
of the previously outstanding shares of its Series A Convertible
Preferred Stock. The Company paid approximately $1.9 million for
this purchase. The funds used were proceeds from the Company's
recent sale of 2 million shares of Common Stock for gross
proceeds of $13 million. The balance of the net proceeds of that
offering will be spent to accelerate the development of the
Company's New Mexico oil and gas properties.
George Mallon, President of the Company, said the purchase of the
Series A shares accomplished three important objectives: 1) it
extinguished a $6 million preference that had been ahead of the
Company's common shares; 2) because the shares retired had been
convertible into common, the purchase eliminated a substantial
overhang over the market for the Company's common stock; and, 3)
elimination of the series will clean-up and simplify the
Company's balance sheet.
Mallon's oil and gas operations, located primarily in the western
United States, are conducted by its wholly-owned subsidiary,
Mallon Oil Company. Mallon also owns approximately 14 million
shares of the common stock of Laguna Gold Company, a company
engaged in the exploration for and development of precious metals
in Costa Rica. Laguna common shares are traded on The Toronto
Stock Exchange under the symbol "LGC." Mallon is headquartered
in Denver, Colorado. Mallon's Common Stock is quoted on the
Nasdaq National Market under the symbol "MLRC."
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.
Mallon Resources Corporation
October 24, 1996 ___/s/ Roy K. Ross_____________________
Roy K. Ross, Executive Vice President
