SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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):
February 4, 2000
CROWN RESOURCES CORPORATION
(Exact name of registrant as specified in its charter)
Washington 0-17480 84-1097086
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification
incorporation) Number)
1675 Broadway, Suite 2400, Denver, Colorado 80202
(Address of Principal Executive Offices)
Registrant's telephone number,
including area code: (303) 534-1030
(Former name or former address, if changed since last report)
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Item 5. Other Events.
Crown Resources Corporation announced that it will
undertake a review of its carrying value and reserve status for the
Crown Jewel project following the decision of its partner, Battle
Mountain Gold Company, to write of its entire investment in the
Crown Jewel project and reclassify Crown Jewel proven and probable
reserves to additional gold mineralization.
Crown Resources Corporation also announced that it has
adopted a change in Accounting Principle to a perferable method of
expensing all exploration costs.
Item 7. Financial Statements, Pro Forma Financial Information
and Exhibits.
Exhibit
Number Description
20.1 Crown Resources Corporation's Press Release dated
February 4, 2000
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, thereunto duly authorized.
CROWN RESOURCES CORPORATION
Dated: February 7, 2000 By: /s/ James R. Maronick
James R. Maronick
Chief Financial Officer
INDEX TO EXHIBITS
Exhibit
Number Description Page No.
20.1 Crown Resources Corporation's Press Release
dated February 4, 2000.
February 4,
2000
VALUATION OF CROWN JEWEL INVESTMENT UNDER REVIEW;
CROWN RESOURCES ADOPTS CHANGE IN ACCOUNTING PRINCIPLE
Denver, Colorado: Crown Resources Corporation announced that it
will undertake a review of its carrying value and reserve status
for the Crown Jewel project following the decision of its
partner, Battle Mountain Gold Company, to write off its entire
investment in the Crown Jewel project and reclassify Crown Jewel
proven and probable reserves to additional gold mineralization.
Battle Mountain's decision was prompted by an unfavorable permit
ruling by Washington state's Pollution Control Hearings Board
concerning water issues.
Crown presently holds 100% ownership in the Crown Jewel deposit.
Battle Mountain can earn a 54% interest in the project by
providing 100% of the funding, without any repayment from Crown,
to place the property into production at a minimum rate of 3,000
tons per day.
Crown is studying whether or not it is appropriate for it to
write down any or all of its $14 million investment in the
property. Crown's basis in the property, and its future funding
obligation differ materially from Battle Mountain's basis and
future funding obligations under the joint venture. Crown
expects to complete this analysis by the end of March 2000.
Crown Resources Corporation also announced that it has adopted a
change in Accounting Principle to a preferable method of
expensing all exploration costs. The Company will record a one-
time cumulative effect write-off of prior capitalized exploration
expenditures effective as of the beginning of the 1999 fiscal
year. This cumulative effect will be recorded by a charge to
current year earnings of approximately $8.5 million for the non-
cash write-down of its exploration properties, including those
held by its 57%-owned subsidiary Solitario Resources
Corporation.
Crown is a U.S. domiciled gold exploration company with
properties in the U.S. and Mexico and a 57%-equity interest in
Solitario Resources Corporation (SLR-Toronto Stock Exchange).
Crown is traded on the NASDAQ National Market System under the
trading symbol CRRS and the Toronto Stock Exchange under the
symbol CRO.
FOR MORE INFORMATION, CONTACT:
Christopher E. Herald - (303) 534-1030
Debbie W. Mino - (800) 229-6827
E-mail: [email protected]
The information set forth above includes "forward-looking"
statements within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of
1934 and is subject to the safe harbor created by those sections.
Factors that could cause results to differ materially from those
projected in the forward-looking statements include, but are not
limited to, the timing of receipt of necessary governmental
permits, the results of judicial proceedings, the market price of
gold, results of current exploration activities and other risk.0
