FORM 10-KSB
U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
[X] Annual report pursuant to section 13 or 15(d) of the Securities Exchange
Act of 1934
[Fee Required] for the fiscal year ended MAY 31, 1997 or
[ ] Transition report pursuant to section 13 or 15(d) of the Securities
Exchange Act of 1934
[No Fee Required] for the transition period from to
Commission file number 0-7501
RUBY MINING COMPANY
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
COLORADO 83-0214117
- -------------------------------------------- -------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
877 North 8th West
RIVERTON, WY 82501
- -------------------------------------------- -------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's Telephone Number, including area code: (307) 856-9278
-----------------------------
Securities registered pursuant to Section 12(b) of the Act:
NONE
Securities registered pursuant to Section 12(g) of the Act:
COMMON STOCK, $0.001 PAR VALUE
------------------------------
(Title of Class)
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. YES X NO ___
Indicate by check mark if disclosure of delinquent filers, pursuant to
Item 405 of Regulation S-K is not contained herein and will not be contained, to
the best of the Registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-KSB or any
amendment to this Form 10-KSB. [ X ]
Registrant's revenues in fiscal year 1997 were $1,100.
There is no established trading market for the Registrant's voting stock
and as a result the aggregate market value of shares of that stock held by
non-affiliates of the Registrant can not be accurately estimated. The Registrant
has securities of only one class of stock (common) outstanding.
CLASS OUTSTANDING AT AUGUST 15, 1997
- -------------------------------------------- -------------------------------
Common Stock, $0.001 par 9,000,000 shares
DOCUMENTS INCORPORATED BY REFERENCE: None.
TRANSITIONAL SMALL BUSINESS DISCLOSURE FORMAT: YES ___ NO X
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PART I
ITEM I. DESCRIPTION OF BUSINESS
(a)(1) Business Development.
Ruby Mining Company ("Registrant" or "Company") was incorporated under the laws
of the State of Colorado on February 16, 1971. The Registrant has been engaged
in the general minerals business, which includes the acquisition, exploration
and development and/or sale or lease of mineral properties and the purchase and
lease of mineral exploration and mining equipment. The Registrant's minerals
activity has been conducted both directly, and indirectly through various joint
ventures with both affiliated and non-affiliated entities. The Registrant held
interests in various mining properties located near Crested Butte, Colorado, a
portion of which were owned directly and a portion of which were subject to a
Joint Venture Agreement entered into in 1977. Until fiscal 1994, this venture
held 168 unpatented mining claims in the Colorado Mineral Belt. These claims
were abandoned in fiscal 1994. The Registrant intends to examine opportunities
for the joint venture to acquire other mineral properties or interests therein,
as warranted. The Registrant owns various mining equipment.
(a)(2) The Registrant has not been involved in any bankruptcy, receivership or
similar proceedings in the last three last fiscal years.
(a)(3) In the last three fiscal years, the Registrant did not engage in any
material reclassification, merger or consolidation, nor did it acquire or
dispose of any material amount of assets otherwise than in the ordinary course
of business.
(b) Business of Issuer.
(b)(1) During the three most recent fiscal years, the Registrant has been
devoting its resources primarily to examine various mineral properties. The
Registrant operates in one business segment; the location, acquisition,
exploration, sale or lease and/or development of natural resource properties.
(b)(2) The Registrant's business activities in the past have included its
participation in the USECC Joint Venture (a joint venture with its principle
shareholder, U.S. Energy Corp. ("USE"), and USE's subsidiary, Crested Corp.
("Crested")), and other affiliates of USE and Crested. The Registrant is no
longer a party to any USECC Joint Venture activities, or other activities with
USE or Crested affiliates, although such Venture provides certain management
services. See Item 6 "Management's Discussion and Analysis of Financial
Condition and Results of Operations."
(b)(3) There has not been a public announcement of, nor has the Registrant
otherwise publicized a new product or industry segment which would require the
investment of a material amount of the assets of the Registrant, or that is
otherwise material.
(b)(4) The evaluation and acquisition of base and precious metals mining
properties and oil and gas properties is a highly competitive business. There
are numerous companies involved in this business, many of which are larger than
the Registrant.
(b)(5) The Registrant's business is not dependent upon the supply of raw
materials.
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(b)(6) The Registrant's business is not dependent upon any single or a few
customers; during the most recently completed fiscal year the Registrant
received all of its revenues from interest earned on cash assets.
(b)(7) The Registrant holds no patents, trademarks, licenses, franchises,
concessions, royalty agreements or labor contracts and does not consider such
property rights to be important to its operations.
(b)(8) Mining operations are subject to statutory and agency requirements which
address various issues, including (i) environmental permitting and ongoing
compliance costs, supervised by the EPA and state agencies (e.g., the Colorado
department of Environmental Quality), for water and air quality, hazardous
waste, etc.; (ii) mine safety and OSHA generally; (iii) wildlife (Department of
Interior for migratory fowl if attractive standing water is involved in
operations); and (iv) nuclear and radioactive materials (generally, the Nuclear
Regulatory Commission, which preempts state regulation in such matters).
The Registrant presently has no operations requiring government approval, and no
applications for any approval are pending or planned at Report date.
(b)(9) Because any mining operations of the Registrant would be subject to at
least some of the requirements discussed in (b)(8) above, the commencement of
such operations would be delayed pending agency approval (or a determination
that approval is not required because of size, etc.) or the project might even
be abandoned due to prohibitive costs (water treatment facilities for mine water
discharge might be too expensive for the projected cash flow from the property).
Generally, the effect of current or probable governmental regulations on the
Registrant cannot be determined until a specific project is undertaken by the
Registrant.
(b)(10) The Registrant has made no direct expenditures for company-sponsored
research and development activities, nor has it been connected with
customer-sponsored research and development projects.
(b)(11) Federal, state and local provisions regulating the discharge of material
into the environment, or otherwise relating to the protection of the
environment, such as the Clean Air Act, Clean Water Act, the Resource
Conservation and Recovery Act, and the Comprehensive Environmental Response
Liability Act ("Superfund") affect minerals operations. For mining operations in
Colorado, applicable environmental regulation includes a permitting process for
mining operations, an abandoned mine reclamation program and a permitting
program for industrial development and siting. Corresponding statutes exist in
most other jurisdictions and would be expected to affect any mining operation
undertaken by the Registrant. Compliance with these laws and any regulations
adopted thereunder can make the development of mining claims prohibitively
expensive, thereby frustrating the sale or lease of properties, or curtailing
profits or royalties which might have been received therefrom. The Registrant
believes it is in compliance in all material respects with all rules, laws and
regulations promulgated by the various federal, state and local agencies
applicable to its current activities, but it cannot anticipate what new
regulations of this type might be proposed and adopted, or what the resulting
effect on its capital expenditures, earnings and competitive position may be.
(b)(12) The Registrant has no full-time employees.
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ITEM 2. DESCRIPTION OF PROPERTY
2(a) Description of Property
MINERAL PROPERTIES
Until fiscal 1994, the Registrant owned 153 unpatented lode mining claims
located in the Ruby Mining District about five miles west of the town of Crested
Butte, Gunnison County, Colorado. These claims were abandoned in fiscal 1994.
JOINT VENTURE PROPERTIES
The Registrant also owns a 25% interest in a joint venture, which held (until
fiscal 1994) 168 unpatented lode mining claims in the Colorado Mineral Belt. The
remaining joint venturers are USE, Crested, and certain mining exploration
limited partnerships, and NUPEC Resources, Inc. These claims were abandoned in
fiscal 1994, and the joint venture is inactive.
OTHER PROPERTIES
USE and Crested provide management services to the Registrant for $500 per
month. Management services include managerial, legal, accounting, geological and
secretarial services. The Registrant has the use of the common area of some
3,500 square feet of the Glen L. Larsen Building, owned by the USECC Joint
Venture, located at 877 North 8th West in Riverton, WY. Those facilities are
adequate for the Registrant's executive offices.
2(b) Investment Policies. Not Applicable.
2(c) Description of Real Estate and Operating Data. Not Applicable.
ITEM 3. LEGAL PROCEEDINGS.
The Registrant is not engaged in any legal proceedings.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
No matters were submitted to the Registrant's security holders during the final
quarter of the most recently completed fiscal year.
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PART II
ITEM 5. MARKET PRICE OF AND DIVIDENDS FOR THE REGISTRANT'S COMMON
EQUITY AND RELATED STOCKHOLDER MATTERS.
(a)(1) Market Information.
There is no established trading market for the Registrant's common stock, which
trades infrequently, if at all, in the over-the-counter market. The Registrant
has been unable to establish that there was trading in the stock during the past
two years or determine whether any price quotations or sale prices may have been
provided during that period.
(b) The Registrant had approximately 2,500 record holders of its common
stock at August 15, 1997.
(c) The Registrant has paid no dividends with respect to its common stock.
There are no contractual restrictions on the Registrant's present or future
ability to pay dividends.
ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following is management's discussion and analysis of significant
factors which have affected the Registrant's liquidity, capital resources and
results of operations during the periods specified.
LIQUIDITY AND CAPITAL RESOURCES
Working capital decreased by $10,600 to a working capital deficit of $15,300
during fiscal 1997. The decrease in working capital was a result of the Company
using cash to pay general and administrative expenses of $1,700. These cash
expenditures were primarily associated with audits and associated reporting to
regulatory agencies. The other component of the decrease in working capital was
an increase of $8,900 in accounts payable to affiliates. This increase was the
result of a $6,000 management fee due USECC Joint Venture ("USECC") for
managerial, legal, accounting, secretarial, geologic and reporting services.
USECC is a joint venture between U.S. Energy Corp. ("USE"), a 27% shareholder of
the Company, and Crested Corp., a USE subsidiary.
Commitments for the Company's cash resources include its ongoing general and
administrative expenses, and a management fee of $500 per month to USECC.
Sources of working capital are cash on hand and cash invested in interest
bearing accounts. It is anticipated that the Registrant will not have any
capital expenditures during fiscal 1997; however, the Registrant would need
additional capital to acquire and develop new properties, and continue operating
long-term. Sources of capital could come from either liquidation of investment
assets, equipment or negotiation with USECC for a reduction to the payable
amounts. No assurance can be given that such events will occur.
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RESULTS OF OPERATIONS
FISCAL 1997 COMPARED WITH FISCAL 1996
Revenues from interest earned on cash held in interest bearing accounts
decreased by $100 to $1,100 for fiscal 1997. Expenses decreased by $200 during
fiscal 1997 due to reduced audit and filing fees.
The Registrant recorded a net loss of $10,700 for fiscal 1997 as compared to a
net loss of $10,800 for fiscal 1996. There was no significant change in revenues
and expenses during 1997.
FISCAL 1996 COMPARED WITH FISCAL 1995
Revenues from interest earned on cash held in interest bearing accounts
increased slightly by $200 to $1,200 for fiscal 1996. Expenses increased by a
nominal amount of $100 during fiscal 1996 due to slightly higher administration
costs associated with stock transfer fees, audit and filing fees.
The Registrant recorded a net loss of $10,800 for fiscal 1996 as compared to a
net loss of $10,900 for fiscal 1995. There was no significant change in revenues
and expenses during 1996.
ITEM 7. FINANCIAL STATEMENTS
Financial statements for the Registrant follow.
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REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To Ruby Mining Company:
We have audited the accompanying balance sheet of Ruby Mining Company (a
Colorado corporation) as of May 31, 1997, and the related statements of
operations, shareholders' equity and cash flows for each of the two years in the
period ended May 31, 1997. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Ruby Mining Company as of May
31, 1997, and the results of its operations and its cash flows for each of the
two years in the period ended May 31, 1997, in conformity with generally
accepted accounting principles.
The accompanying financial statements have been prepared assuming that Ruby
Mining Company will continue as a going concern. As discussed in Note A to the
financial statements, the Company has experienced recurring losses, has no
current operations and has a significant accumulated deficit, matters that raise
substantial doubt about its ability to continue as a going concern. Management's
plans in regard to these matters are also described in Note A. The financial
statements do not include any adjustments relating to the recoverability and
classification of asset carrying amounts or the amount and classification of
liabilities that might result should the Company be unable to continue as a
going concern.
ARTHUR ANDERSEN LLP
Denver, Colorado,
August 15, 1997.
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RUBY MINING COMPANY
BALANCE SHEET
MAY 31, 1997
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 34,000
Other assets 300
----------
34,300
INVESTMENTS (Notes B and C) 130,500
PROPERTY AND EQUIPMENT, at cost:
Mining equipment 39,600
Less accumulated depreciation (31,700)
----------
7,900
----------
$ 172,700
==========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Director fees payable (Note C) $ 10,400
Accounts payable - affiliates 39,200
-----------
49,600
SHAREHOLDERS' EQUITY:
Common stock, $.001 par value;
authorized, 20,000,000 shares; issued
and outstanding, 9,000,000 shares 9,000
Additional paid-in capital 623,400
Accumulated deficit (560,900)
Unrealized holding gain on investments
(Note C) 51,600
-----------
123,100
-----------
$ 172,700
===========
The accompanying notes to financial statements are an integral part of this
balance sheet.
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RUBY MINING COMPANY
STATEMENTS OF OPERATIONS
YEAR ENDED MAY 31,
------------------
1997 1996
---- ----
REVENUES:
Interest $ 1,100 $ 1,200
--------- ----------
COSTS AND EXPENSES:
General and administrative (Note A) 11,800 12,000
----------- ----------
NET LOSS $ (10,700) $ (10,800)
========= ==========
NET LOSS PER SHARE $ * $ *
========= ==========
WEIGHTED AVERAGE SHARES
OUTSTANDING 9,000,000 9,000,000
========= ==========
* Less than $.01 per share.
The accompanying notes to financial statements are an integral part of these
statements.
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<TABLE>
<CAPTION>
RUBY MINING COMPANY
STATEMENT OF SHAREHOLDERS' EQUITY
Unrealized
Holding
Additional Gain (Loss) Total
Common Stock Paid-in Accumulated On Shareholders'
Shares Amount Capital Deficit Investments Equity
------ ------ ------- ------- ----------- ------
<S> <C> <C> <C> <C> <C> <C>
Balance, May 31, 1995 9,000,000 $ 9,000 $ 623,400 $ (539,400) $ 7,400 $ 100,400
Net unrealized holding
gain on investments -- -- -- -- 255,200 255,200
Net loss -- -- -- (10,800) -- (10,800)
--------- -------- ---------- ----------- ---------- ----------
Balance, May 31, 1996 9,000,000 9,000 623,400 (550,200) 262,600 344,800
Net unrealized holding
loss on investments -- -- -- -- (211,000) (211,000)
Net loss -- -- -- (10,700) -- (10,700)
--------- -------- ---------- ----------- ---------- ----------
Balance, May 31, 1997 9,000,000 $ 9,000 $ 623,400 $ (560,900) $ 51,600 $ 123,100
========= ======== ========== =========== ========== ==========
The accompanying notes to financial statements are an integral part of these statements.
</TABLE>
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RUBY MINING COMPANY
STATEMENT OF CASH FLOWS
YEAR ENDED MAY 31,
------------------
1997 1996
---- ----
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (10,700) $ (10,800)
Adjustments to reconcile net loss
to net cash provided by (used in)
operating activities:
Increase in accounts payable 9,000 11,700
----------- ---------
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES (1,700) 900
--------- ---------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (1,700) 900
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 35,700 34,800
---------- ---------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 34,000 $ 35,700
========== =========
SUPPLEMENTAL DISCLOSURES OF NONCASH ACTIVITY:
Changes in market
value of investments $(211,000) $ 255,200
========= =========
No interest or income taxes were paid in the years ended May 31, 1997 and
1996.
The accompanying notes to financial statements are an integral part of these
statements.
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RUBY MINING COMPANY
NOTES TO FINANCIAL STATEMENTS
MAY 31, 1997
A. BUSINESS ORGANIZATION AND GOING CONCERN
Ruby Mining Company (the "Company") was incorporated in the State of
Colorado on February 16, 1971, to engage in the acquisition, exploration and
development and/or sale or lease of mineral properties and the purchase and
lease of mineral exploration and mining equipment.
The Company currently has no operating activities, but continues to
incur losses from general and administrative expenses and has a significant
accumulated deficit. These expenses are projected to exceed investment interest
revenues again in 1998. Management continues to analyze the viability of the
Company and its future. There is substantial doubt as to whether the Company
will continue as a going concern. However, the Company has no commitments for
capital expenditures in the next year and management believes its available cash
is sufficient to fund next year's obligations, primarily for general and
administrative expenses.
B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
PROPERTY AND EQUIPMENT
The Company capitalizes all costs related to the acquisition,
exploration and development of mineral properties. Capitalized costs are charged
to operations when the properties are determined to have declined in value or
have been abandoned. The Company currently has no operations or mineral
properties.
Depreciation of mining equipment is provided by the straight-line method
over the estimated useful lives of the related assets. All mining equipment
owned by the Company is fully depreciated with a remaining salvage value of
$4,900. Other remaining assets have a book value of $3,000.
INVESTMENTS
Based on the provisions of Statement of Financial Accounting Standards
("SFAS") No. 115, the Company accounts for marketable equity securities as
available-for-sale securities. Available-for-sale securities are measured at
fair value at each reporting date, with unrealized holding gains and losses
excluded from earnings and reported as a net amount as a separate component of
shareholders' equity until realized.
NET LOSS PER SHARE
Net loss per share is computed using the weighted average number of
common shares outstanding during the period.
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RUBY MINING COMPANY
NOTES TO FINANCIAL STATEMENTS
MAY 31, 1997
(CONTINUED)
CASH AND CASH EQUIVALENTS
Amounts held by depository institutions in demand deposit accounts are
considered cash and cash equivalents. For purposes of the statements of cash
flows, cash equivalents include all cash investments with original maturities of
three months or less.
INCOME TAXES
The Company accounts for income taxes in accordance with SFAS No. 109,
"Accounting For Income Taxes". This statement requires recognition of deferred
income tax assets and liabilities for the expected future income tax
consequences, based on enacted tax laws, of temporary differences between the
financial reporting and tax bases of assets, liabilities and carryforwards.
SFAS No. 109 requires recognition of deferred tax assets and liabilities
for the expected future effects of all deductible temporary differences, loss
carryforwards and tax credit carryforwards. Deferred tax assets are then
reduced, if deemed necessary, by a valuation allowance for any tax benefits
which, based on current circumstances, are not expected to be realized.
C. INVESTMENTS AND RELATED PARTY TRANSACTIONS
U.S. Energy Corp. (USE), a 26.7% shareholder, and its subsidiary,
Crested Corp., provide certain management and administrative services to the
Company under a management agreement. Charges for these services were $6,000 per
annum for 1997 and 1996.
The Company has accrued fees of $10,400 to be paid to the Board of
Directors for services performed prior to 1990.
The Company's investments consist of marketable equity securities of
affiliated, but not controlled companies as follows:
MAY 31, 1997
------------
Fair
Market
Cost Value
---- -----
U.S. Energy Corp. $ 51,200 $ 112,000
Crested Corp. 27,700 18,500
--------- ---------
$ 78,900 $ 130,500
========= =========
The aggregate fair market value of the marketable equity securities
decreased $211,000 from June 1, 1996 to May 31, 1997. The net aggregate
unrealized holding gain on investments at May 31, 1997 was $51,600.
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RUBY MINING COMPANY
NOTES TO FINANCIAL STATEMENTS
MAY 31, 1997
(CONTINUED)
D. INCOME TAXES
There were no taxes currently payable at May 31, 1997.
The following table reconciles the Company's effective income taxes to
statutory federal income taxes:
MAY 31,
--------------------------
1997 1996
-------- ---------
Federal income tax benefit
at statutory rates $ (3,600) $ (3,700)
Less valuation allowance 3,600 3,700
-------- --------
Effective tax $ -- $ --
======== ========
As of May 31, 1997, the Company had net operating loss ("NOL")
carryforwards available of approximately $464,300 which expire beginning in 1998
through 2012.
The components of deferred taxes as of May 31, 1997 are as follows:
Deferred tax assets:
Tax effect of NOL carryforwards $ 157,800
Valuation allowance (157,800)
-----------
Net deferred tax asset $ --
===========
The Company has established a valuation allowance for the full amount of
the NOL carryforwards because, in its present nonoperating state, the Company's
ability to generate future taxable income is uncertain. The deferred tax asset
and the related valuation allowance decreased approximately $61,900 from May 31,
1996 due to the expiration of the 1981 NOL.
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ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
AND FINANCIAL DISCLOSURE.
Not applicable.
PART III
ITEM 9. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT.
(a)(1)(2)(3) Identification of Directors and Executive Officers.
Members of the Registrant's Board of Directors are elected to hold office until
the next annual meeting of shareholders and until their successors are elected
or appointed and qualified. Officers are appointed by the Board of Directors
until a successor is elected and qualified or until resignation, removal or
death.
The Registrant's executive officers and directors are listed below:
NAME AGE POSITION AND TENURE
---- --- -------------------
John L. Larsen 65 CEO, President, Treasurer and a Director
since February 1971.
Harold F. Herron 44 Assistant Secretary since August 1979,
Director since July 1980 and
Secretary since May 1991.
George F. Smith 62 Vice President and Director since May
1986.
No arrangement exists between any of the above officers and directors pursuant
to which any one of those person was elected to such office or position.
(a)(4) BUSINESS EXPERIENCE. John L. Larsen has been principally employed as
chief executive officer of the Registrant's principal shareholder, USE, for more
than five years. Harold F. Herron has been employed as President of The Brunton
Company ("Brunton"), a former subsidiary of USE which manufactures and/or
markets pocket transits, precision and recreational compasses, knives and
binoculars, for more than five years. George F. Smith has been principally
employed as operations manager for USE and Crested for more than the past five
years.
(a)(5) DIRECTORSHIPS. John L. Larsen is also a director of USE and Crested. Mr.
Herron is also a director of USE and Northwest Gold, Inc. Messrs. Larsen, Herron
and Smith hold no other directorships of any other companies with a class of
securities registered pursuant to Section 12 of the Exchange Act or that are
subject to the requirements of Section 15(d) of such Act, or of any company
registered as an investment company under the Investment Company Act of 1940.
(b) Identification of Certain Significant Employees.
Not applicable.
(c) Family Relationships.
Harold F. Herron is John L. Larsen's son-in-law.
(d) Involvement in Certain Legal Proceedings.
During the past five years, no director, person nominated to become a
director, or executive officer of Registrant:
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(1) has filed or had filed against him, a petition under the federal bankruptcy
law or any state insolvency law, nor has any court appointed a receiver, fiscal
agent or similar officer by or against any business of which such person was a
general partner, or any corporation or business association of which he was an
executive officer within two years before the time of such filing;
(2) was convicted in a criminal proceeding or is the named subject of a pending
criminal proceeding (excluding traffic violations and other minor offenses);
(3) was the subject of any order, judgment, or decree, not subsequently
reversed, suspended or vacated, of any court of competent jurisdiction,
permanently or temporarily enjoining, barring or suspending him from, or
otherwise limiting his involvement in, any type of business, securities or
banking activities, or
(4) was found by a court of competent jurisdiction in a civil action or by the
Securities and Exchange Commission or the Commodity Futures Trading Commission
to have violated any federal or state securities or commodities law, and the
judgment in such civil action or finding by the Commission has not been
subsequently reversed, suspended or vacated.
Based upon a review of Forms 3 and 4 furnished to the Registrant pursuant to
Rule 16a-3(e) since June 1, 1996 and written representations referred to in Item
405(b)(2)(i) of Regulation S-K, no directors, officers, beneficial owners of
more than ten percent of the Registrant's common stock, or any other person
subject to Section 16 of the Exchange Act failed for the period from June 1,
1996 through May 31, 1997, to file on a timely basis, the reports required by
Section 16(a) of the Exchange Act.
ITEM 10. EXECUTIVE COMPENSATION
No executive officer of the Registrant received aggregate cash compensation from
the Registrant in excess of $100,000 during the Registrant's last fiscal year.
The following table contains information with respect to the aggregate
compensation accrued by the Registrant for the last two fiscal years ended May
31, 1997, to the chief executive officer:
SUMMARY COMPENSATION TABLE(i)(ii)
Annual Compensation
Name And Principal Position Year Salary Bonus
- --------------------------- ---- ------ -----
John L. Larsen, CEO 1997 -0- -0-
1996 -0- -0-
(i) During fiscal 1997, no cash compensation was paid to the executive officers.
(ii) The USECC Joint Venture provides management and administrative services to
the Registrant for a monthly fee of $500. It is estimated that employees of USE
who provide services for the Registrant spend less than five percent of their
time on the affairs of the Registrant.
No cash bonuses were paid by the Registrant to the group of persons identified
in paragraph (a) of Item 9, during the year.
Minimum director fees of $1,500 are owed to the group of individuals identified
in paragraph (a) of Item 9, for services during each fiscal year ($10,400 for
periods prior to June 1, 1989). However, for the past several years these
amounts have not been paid and have been waived by the directors. It is
anticipated that the directors will again waive these fees for fiscal 1998.
The Registrant does not have any annuity, pension, retirement, incentive,
deferred compensation plans, stock option or stock appreciation rights plans,
employment contracts or arrangements whereby any of its executive officers or
directors have been paid or may receive compensation from the Registrant.
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Alternative Pension Plan Disclosure: The Registrant has no defined benefit or
actuarial pension plans.
(c) Option/SAR Grants.
The Registrant has no stock option or stock appreciation rights plans.
(d) Aggregated Option/SAR Exercise and Fiscal Year-End Option/SAR Value.
Not Applicable.
(e) Long Term Incentive Plan ("LTIP") Awards.
Not Applicable.
(f) Compensation of Directors.
(1) Standard Arrangements: The Registrant is obligated to pay each member of the
Board directors' fees of $500 per year and $100 per meeting attended, together
with reasonable travel and lodging expenses. As discussed above, these fees have
been waived by the directors.
(2) Other arrangements: There were no other arrangements pursuant to which any
director of the Registrant was compensated for services as a director during the
fiscal year.
(g) Employment Contracts and Termination of Employment and Change in Control
Arrangements.
The Registrant has no compensatory plan or arrangement, nor are any payments to
be received from the Registrant, with respect to any individual named in the
Table at Item 11(b) for the latest or the next preceding fiscal year, which
compensation results or will result from the resignation, retirement or any
other termination of such individual's employment with the Registrant or from a
change in the individual's responsibilities following a change in control, in
which the amount involved, including all periodic payments or installments,
exceeds $100,000.
ITEM 11 SECURITY OWNERSHIP OF CERTAIN BENEFICIAL WNERS AND
MANAGEMENT.
(a) Security Ownership of Certain Beneficial Owners.
The following table shows the holder known by the Registrant to be the
beneficial owner of more than five percent of the Registrant's common stock as
of report date.
AMOUNT AND
NATURE OF
NAME AND ADDRESS BENEFICIAL PERCENT
TITLE OF CLASS OF BENEFICIAL OWNER OWNERSHIP OF CLASS
- -------------- ------------------- --------- --------
Common stock, U.S. Energy Corp. 2,400,000 26.7%
$.001 par value Glen L. Larsen Building
877 North 8th West
Riverton, WY 82501
The listed holder exercises sole voting and investment powers over the shares
set forth opposite its name.
(b) Security Ownership of Management.
The following table shows, as of August 15, 1997 ownership by the Registrant's
officers and directors, individually and as a group, of securities of the
Registrant and its parent, USE.
17
<PAGE>
AMOUNT AND
NATURE OF
NAME AND ADDRESS BENEFICIAL PERCENT
OF BENEFICIAL OWNER TITLE OF CLASS OWNERSHIP OF CLASS(2)
- ------------------- -------------- --------- -----------
John L. Larsen Ruby Mining Company 2,400,000(3) 26.7%
201 Hill Street common stock, $.001
Riverton, WY 82501 par value
Harold F. Herron Ruby Mining Company 2,400,400(3) 26.7%
3425 Riverside Drive common stock, $.001
Riverton, WY 82501 par value
George F. Smith Ruby Mining Company -0- 0.0%
1602 East Pershing common stock, $.001
Riverton, WY 82501 par value
All officers and Ruby Mining Company 2,400,400(3) 26.7%
directors as a group common stock, $.001
(three persons) par value
(1) Except as otherwise noted the listed executive officer exercises sole
dispositive and voting powers over the shares set forth opposite his name.
(2) Percent of class is computed by dividing the number of shares beneficially
owned plus any options held by the reporting person or group, by the number of
shares outstanding plus the shares underlining options held by that person or
group.
(3) John L. Larsen and Harold F. Herron are two of seven directors of USE and
accordingly share the dispositive and voting power over the 2,400,000 shares of
the Registrant's stock held by USE, with the remaining directors of USE.
(c) The Registrant is not aware of any pledge of its securities or any other
arrangement which may at a subsequent date result in a change in control of the
Registrant.
ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.
(A)(B) TRANSACTIONS WITH MANAGEMENT AND OTHERS.
Since June 1, 1991 there were no transactions and there are no proposed
transactions in which the amount involved exceeds $60,000 and in which any
executive officer, nominee or director of the Registrant, any security holder
who is known by the Registrant to hold of record or beneficially more than five
percent of any class of the Registrant's voting securities or any member of the
immediate family of any of the foregoing person, had or will have a direct or
indirect material interest.
(C) PRINCIPLE SHAREHOLDER OWNERSHIP.
USE is the principle shareholder of the Registrant and holds 26.7% of the
Registrant's common stock.
(D) TRANSACTIONS WITH PROMOTERS.
Not applicable.
18
<PAGE>
ITEM 13. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits Required to be Filed:
3.1 Articles of Incorporation................................... [1]
3.2 Amendment to Articles of Incorporation...................... [1]
3.3 By-Laws..................................................... [1]
10.1 Joint Venture Agreement -
USE, Crested, NUPEC and Registrant.......................... [2]
[1] Incorporated by reference from the like numbered exhibit to the
Registrant's Annual Report on Form 10-K for the year ended May
31, 1991.
[2] Incorporated by reference from the exhibit to the Registrant's
November 30, 1990, Quarterly Report on Form 10-Q.
(b) Reports filed on Form 8-K.
During the fourth quarter of the last fiscal year, the Registrant
did not file any reports on Form 8-K.
19
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
RUBY MINING COMPANY
(Registrant)
Date: August 22, 1997 By: /s/ JOHN L. LARSEN
-----------------------------------
JOHN L. LARSEN,
Chief Executive Officer
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.
Date: August 22, 1997 By: /s/ JOHN L. LARSEN
------------------------------------
JOHN L. LARSEN, Director
Date: August 22, 1997 By: /s/ GEORGE F. SMITH
------------------------------------
GEORGE F. SMITH, Director
Date: August 22, 1997 By: /s/ HAROLD F. HERRON
------------------------------------
HAROLD F. HERRON, Director
Date: August 22, 1997 By: /s/ ROBERT SCOTT LORIMER
------------------------------------
ROBERT SCOTT LORIMER,
Principal Financial Officer
and Chief Accounting Officer
20
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF RUBY MINING COMPANY FOR THE YEAR ENDED MAY 31, 1997
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000085684
<NAME> RUBY MINING COMPANY
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAY-31-1997
<PERIOD-END> MAY-31-1997
<CASH> 34,000
<SECURITIES> 0
<RECEIVABLES> 300
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 34,300
<PP&E> 39,600
<DEPRECIATION> (31,700)
<TOTAL-ASSETS> 172,700
<CURRENT-LIABILITIES> (49,600)
<BONDS> 0
0
0
<COMMON> (9,000)
<OTHER-SE> 114,100
<TOTAL-LIABILITY-AND-EQUITY> 172,700
<SALES> 0
<TOTAL-REVENUES> 1,100
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 11,800
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (10,700)
<INCOME-TAX> 0
<INCOME-CONTINUING> (10,700)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (10,700)
<EPS-PRIMARY> .001
<EPS-DILUTED> .001
</TABLE>
