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): October 15, 1997
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
Mallon Resources Corporation (the "Company") issued the following
press release, dated October 15, 1997, the text of which follows:
Mallon Resources Corporation (Nasdaq: "MLRC") announced today
that it has engaged IBK Capital Corp., a Canadian investment banking
firm, to explore strategic alternatives relating to maximizing the
value of its 56% interest in Laguna Gold Company, a junior gold
company whose shares are listed on The Toronto Stock Exchange.
Alternatives being explored include a possible sale of the Company's
Laguna stock, a merger of Laguna with another mining company, or other
possible transactions involving Laguna. The Company cautioned that no
assurances can be given that any such transactions will be arranged,
or as to the terms of any arrangements that may be made. The Company
noted that in connection with any disposition of its interest in
Laguna, the Company may incur a loss on the recovery of its
investment, but that pending receipt of offers, no estimate of whether
such a loss will be incurred can be made.
George Mallon, Chairman of the Company, said, "We believe Laguna
continues to be a viable junior gold company with valuable properties.
However, the relatively low price of gold that has persisted for some
months, coupled with the turmoil in the market for junior golds
arising from the Bre-X fraud, have combined to significantly depress
the market value of Laguna shares, along with the values of all other
junior gold stocks. We've concluded that it is in the Company's best
long term interest to explore alternatives for our Laguna investment,
and to continue to concentrate our efforts on our primary business -
the development of our oil and gas properties."
Mallon Resources Corporation is a Denver, Colorado, based oil and
gas exploration and production company operating primarily in the
Delaware and San Juan Basins of New Mexico. Mallon's Common Stock is
quoted on the Nasdaq National Market tier of the Nasdaq Stock 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 15, 1997 __/s/ Roy K. Ross________________
Roy K. Ross, Executive Vice President
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