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 of earliest event reported): May 29, 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)
Item 5. Other Events
On June 29, 1996, Mallon Resources Corporation (the "Company") issued
a press release, the text of which was as follows:
Mallon Resources Corporation (Nasdaq: "MLRC") reports that its gold
mining subsidiary, Laguna Gold Company, has increased its ownership
interest from 90% to 100% in its Costa Rica Gold Project, by acquiring
the 10% minority interest. The Project controls 19 concessions
covering approximately 277 square kilometers. Included among the
properties is the Rio Chiquito Deposit, which contains diluted proven
and probable mineable ore reserves of 3,578,659 tonnes with average
grades of 1.520 grams of gold and 10.914 grams of silver per tonne.
Laguna's ownership interest increase resulted when Laguna acquired by
merger all of the assets of its former exploration partner, privately-
held Red Rock Ventures, Inc. Red Rock's only asset was its 10%
interest in the concessions. In the merger, shareholders of Red Rock
received an aggregate of 2 million shares of Laguna's common stock,
and convertible promissory notes in the aggregate principal amount of
US$230,000. The shares issued in the merger reflect a 10% equity
interest in Laguna, prior to giving effect to Laguna's recent
completion of a US$5 million Special Warrants offering. In that
previously reported transaction, Laguna sold 5,000,000 Special
Warrants at a price of US$1.00 per Special Warrant. Each Special
Warrant represents one share of Laguna common stock and a warrant to
purchase an additional share for US$1.50 at any time on or before
November 24, 1997. Laguna plans to apply to have the shares listed
for trading on the Toronto Stock Exchange.
George Mallon, Chairman of Mallon Resources, said, "This Red Rock
merger, Laguna's recent financing, and Laguna's planned TSE listing
are three key steps in our long range plan to separate Laguna from
Mallon, and establish Laguna as an aggressive, growing, independent
gold company." Following the merger, Mallon's 14.4 million Laguna
shares represent approximately 57% of Laguna's issued and outstanding
common shares.
Mallon's oil and gas operations, located primarily in the western
United States, are conducted by its wholly-owned subsidiary, Mallon
Oil Company. Mallon's mining activities are conducted by Laguna Gold
Company. Mallon is headquartered in Denver, Colorado. The Company's
common stock is listed on the Nasdaq's National Market System under
the trading 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
June 3, 1996 ____/s/ Roy K. Ross_____________
Roy K. Ross, Executive Vice President
