<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-K
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Fiscal Year Ended DECEMBER 31, 1997
Commission File No. 132-3
-----------------------------------------------------------
SILVER MOUNTAIN LEAD MINES, INC.
- -------------------------------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Idaho 82-6008744
- ------------------------------- -----------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
6500 Mineral Drive
Coeur d'Alene, Idaho 83815-8788
- ------------------------------------------- ------------------------
(Address of principal executive offices) (Zip Code)
(Registrant's telephone number, including area code) 208-769-4100
------------------------
Securities registered pursuant to Section 12(g) of the Act:
Title of each class
------------------------------------------
Common stock, par value 10 cents per share
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, and (2) has been subject to such filing
requirements for at least the past 90 days. Yes XX 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 registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. [ X ]
The aggregate market value of the registrant's voting common stock held by
non-affiliates was $153,300 as of May 24, 1991, the date Silver Mountain Lead
Mines ceased being quoted on the Spokane Stock Exchange (due to the Exchange's
discontinuance of operations). As of February 28, 1998, there were 3,066,000
shares of the registrant's common stock outstanding.
<PAGE> 2
PART I
Item 1. BUSINESS
Silver Mountain Lead Mines, Inc. (Silver Mountain or the Company),
an Idaho corporation, was organized in 1952. At present the
Company is engaged in no activity other than necessary maintenance
work on its property.
On June 15, 1954, Silver Mountain entered into an agreement with
Hecla Mining Company (Hecla) and The Bunker Hill Company (Bunker
Hill) whereby these two companies would explore and develop the
mining properties owned or held by Silver Mountain and would mine
any commercial ore deposits discovered as a result of this
exploration and development.
The contract provided that if commercial ore was found on the
Silver Mountain property, Hecla and Bunker Hill would provide all
necessary mining equipment and would mine the ore of which Silver
Mountain would receive 25% with Hecla and Bunker Hill sharing
equally in the remaining 75%. Any charges against Silver Mountain
for such costs, in excess of their net smelter returns from any
ores produced, would be carried forward to be paid only from net
profits from any future production of such property.
The contract contained a provision that when and if a commercial
ore body was discovered on the property or after a total of
$1,000,000 had been expended on exploration and development of said
property, Silver Mountain would then own an undivided 25% interest
in the property.
On October 7, 1959, Silver Mountain was advised by Hecla and Bunker
Hill that exploration work, which cost in excess of $1,600,000, had
been performed on the property under the terms of the above
agreement. $538,000 of such costs was advanced by the Defense
Minerals Exploration Administration. After being notified of this
fact, Silver Mountain deeded to Hecla and Bunker Hill each an
undivided 37.5% interest in the Silver Mountain property under the
terms of the agreement.
Since the 1954 Agreement was terminated on October 7, 1959, the
necessary maintenance and assessment work on the property has been
performed by Hecla and Bunker Hill or other outside parties and
Silver Mountain has been charged 25% of such expenses.
On November 1, 1982, Bunker Limited Partnership purchased from
Bunker Hill all of its Idaho assets and certain liabilities.
Included in this purchase by Bunker Limited Partnership were Bunker
Hill's 37.5% interest in the Silver Mountain property, 896,000
shares of Silver Mountain stock, and notes receivable from Silver
Mountain. As a result of this purchase, Bunker Limited Partnership
and Hecla continued management of the Silver Mountain property.
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<PAGE> 3
On June 6, 1988, the Company entered into a mining lease with Hecla
whereby Hecla received the exclusive right to the exploration,
development and mining operations upon the Company's property for a
period of 25 years subject to cancellation if the property was not
in production within 15 years. This lease was in exchange for a
net profits royalty of 40%. On January 18, 1991, the lease was
terminated.
At February 9, 1995, Bunker Limited Partnership and Hecla Mining
Company, pursuant to the agreement dated June 15, 1954, each owned
an undivided 37.5% interest in the Silver Mountain property. Stock
ownership of the two companies at February 9, 1995, was as follows:
Shares Held as of Percent of
February 9, 1995 Ownership
----------------- ----------
Bunker Limited Partnership 896,000 29.22%
Hecla Mining Company 115,000 3.75%
--------- -----
Total 1,011,000 32.97%
========= =====
On February 10, 1995, Hecla Mining Company acquired Bunker Limited
Partnership's 37.5% undivided interest in the Silver Mountain
property and their entire stock interest in the Company. Hecla
currently holds 1,011,000 or 32.97% shares of common stock of the
Company.
From November 1, 1982 to December 31, 1994, Bunker Limited
Partnership provided the Company with general accounting services.
Commencing January 1, 1995, Hecla Mining Company (which owned
32.97% of common stock from February 10, 1995 to December 31, 1997)
provided accounting and legal services to Silver Mountain. In 1996
and 1997, Silver Mountain paid Hecla Mining Company $9,000 each
year for these services. At December 31, 1997, the Company had
obligations to Hecla Mining Company totaling $2,622 and $63,927 for
accounts payable and notes payable, respectively. At December 31,
1996, the Company had obligations to Hecla Mining Company totaling
$2,256 and $63,927 for accounts payable and notes payable,
respectively.
On August 28, 1997, the United States Department of Justice filed a
Motion for Leave to File a First Amended Complaint which sought to
add the Company and 16 other companies in litigation pending in the
United States District Court in and for the State of Idaho,
captioned United States of America, Plaintiff, v. ASARCO
Incorporated, et al., Defendants, Civil No. 96-0122-N-EJL. The
litigation involves a claim under the Comprehensive Environmental
Response, Compensation and Liability Act by the United States of
America for alleged damages to the environment and associated
natural resources through the Company's historic mining activities
in and near the Bunker Hill Superfund Site and the Coeur d'Alene
River watershed located in North Idaho. The court has not yet
ruled upon the motion.
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<PAGE> 4
Silver Mountain is an inactive company. It has no known ore
reserves and at present has no immediate plans for developing the
property.
Item 2. PROPERTY
Silver Mountain's property is located about one and one-half miles
east of Mullan, Idaho. In 1993, Silver Mountain, together with the
co-owners (Hecla Mining Company and Bunker Limited Partnership)
relinquished its rights to certain unpatented mining claims,
thereby reducing its property ownership from a 25% interest in 26
patented claims, 93 unpatented claims, and 160 acres of mineral
rights to a 25% interest in 37 patented mining claims and 160 acres
of patented mineral property.
Item 3. LEGAL PROCEEDINGS
On August 28, 1997, the United States Department of Justice filed a
Motion for Leave to File a First Amended Complaint which sought to
add the Company and 16 other companies in litigation pending in the
United States District Court in and for the State of Idaho,
captioned United States of America, Plaintiff, v. ASARCO
Incorporated, et al., Defendants, Civil No. 96-0122-N-EJL. The
litigation involves a claim under the Comprehensive Environmental
Response, Compensation and Liability Act by the United States of
America for alleged damages to the environment and associated
natural resources through the Company's historic mining activities
in and near the Bunker Hill Superfund Site and the Coeur d'Alene
River watershed located in North Idaho. The court has not yet
ruled upon the motion.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
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<PAGE> 5
PART II
Item 5. MARKET FOR THE REGISTRANT'S COMMON STOCK AND RELATED
SECURITY HOLDER MATTERS
a. The Company's stock ceased to be traded on any stock exchange
on May 24, 1991, when the Spokane Stock Exchange (where the
stock had been listed) discontinued operations. At February
28, 1998, the bid and ask price for the Company's common stock
was ten cents and twenty cents, respectively. However, there
has not been an established trading market for the common
stock since May 24, 1991, and, as such, the bid and ask price
do not constitute a reliable indication of the price that a
holder of common stock could expect to receive upon the sale
of any particular quantity thereof.
b. As of February 28, 1998, there were approximately 975
shareholders of the Company's common stock.
c. The Company has paid no dividends and does not anticipate
being able to pay any dividends in the foreseeable future.
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<PAGE> 6
Item 6. SELECTED FINANCIAL DATA
The Company is an inactive company. A summary of its operations
for the five-year period ended December 31, 1997 is as follows:
<TABLE>
<CAPTION>
1997 1996 1995 1994 1993
---------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Interest and other
income $ 1,916 $ 2,400 $ 2,478 $ 1,685 $ 1,845
--------- --------- --------- --------- ---------
Administrative expense (10,136) (9,646) (9,245) (1,390) (1,931)
--------- --------- --------- --------- ---------
Income (loss) from
operations before
income taxes (8,220) (7,246) (6,767) 295 (86)
Provision for income
taxes 30 30 33 10 4,431
--------- --------- --------- --------- ---------
Net income (loss) $ (8,250) $ (7,276) $ (6,800) $ 285 $ (4,517)
========= ========= ========= ========= =========
Basic income (loss)
per common share $(0.00269) $(0.00237) $(0.00222) $ 0.00009 $(0.00147)
========= ========= ========= ========= =========
Total assets $ 381,357 $ 389,241 $ 398,719 $ 401,505 $ 401,327
========= ========= ========= ========= =========
Long-term debt $ 63,927 $ 63,927 $ 63,927 $ 63,927 $ 63,927
========= ========= ========= ========= =========
</TABLE>
No cash dividends were declared in the five-year period ended
December 31, 1997.
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<PAGE> 7
Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The Company's general financial condition remained substantially
unchanged during 1997 compared to 1996. Cash and cash equivalents
decreased $7,884 (15%) from $52,087 at December 31, 1996, to
$44,203 at December 31, 1997. Working capital declined $8,250
(17%) from $49,831 at December 31, 1996 to $41,581 at December 31,
1997. The decreases in cash and cash equivalents and working
capital are primarily attributable to higher administrative
expenses and a $412 decrease in interest income.
The 1997 net loss of $8,250 was $974 more than the net loss in 1996
totaling $7,276. This increased loss was primarily attributable to
a $490 increase in administrative expenses and a $484 decrease in
interest and transfer fee income.
The Company expects to keep the property on a care-and-maintenance
basis. Management believes that the Company has sufficient cash
and cash equivalents at December 31, 1997, to meet its present and
intermediate financial requirements.
The Company is presently inactive and is no longer considered to be
in the development stage. All costs are being expensed as
incurred. Through December 31, 1994, the Company was considered a
development stage company.
The information reported under Item 6. Selected Financial Data and
Item 8. Financial Statements and Supplementary Data regarding
financial condition is incorporated herein by reference.
Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
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<PAGE> 8
SILVER MOUNTAIN LEAD MINES, INC.
UNAUDITED BALANCE SHEETS
December 31, 1997 and 1996
----------
<TABLE>
<CAPTION>
ASSETS
1997 1996
--------- ---------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 44,203 $ 52,087
--------- ---------
Total current assets 44,203 52,087
--------- ---------
Property, plant and equipment
Mining claims 307,095 307,095
Deferred development costs 30,059 30,059
--------- ---------
337,154 337,154
--------- ---------
Total assets $ 381,357 $ 389,241
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,622 $ 2,256
--------- ---------
Total current liabilities 2,622 2,256
--------- ---------
Long-term liabilities:
Note payable - Hecla Mining Company 63,927 63,927
--------- ---------
Total liabilities 66,549 66,183
--------- ---------
Commitments and Contingencies (Note 6)
Stockholders' equity:
Common stock; par value $0.10 per share
5,000,000 shares authorized, 3,066,000
shares outstanding 306,600 306,600
Accumulated surplus 8,208 16,458
--------- ---------
314,808 323,058
--------- ---------
Total liabilities and stockholders' equity $ 381,357 $ 389,241
========= =========
The accompanying notes are an integral part
of the financial statements.
</TABLE>
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<PAGE> 9
SILVER MOUNTAIN LEAD MINES, INC.
UNAUDITED STATEMENTS OF INCOME AND ACCUMULATED SURPLUS
For the years ended December 31, 1997, 1996, and 1995
-------------
<TABLE>
<CAPTION>
1997 1996 1995
--------- -------- --------
<S> <C> <C> <C>
Income:
Transfer fees $ 24 $ 96 $ 32
Interest income 1,892 2,304 2,446
--------- -------- --------
Total income 1,916 2,400 2,478
--------- -------- --------
Expenses:
Accounting and legal fees 9,000 9,000 9,000
Office expenses 115 96 (20)
Filing fees 300 250 250
Property taxes 30 - - (230)
Stock transfer expense 691 300 245
--------- -------- --------
Total expenses 10,136 9,646 9,245
Loss from operations before
provision for income taxes (8,220) (7,246) (6,767)
Provision for income taxes 30 30 33
--------- -------- --------
Net loss (8,250) (7,276) (6,800)
Accumulated surplus at beginning
of year 16,458 23,734 30,534
--------- -------- --------
Accumulated surplus at end of year $ 8,208 $ 16,458 $ 23,734
========= ======== ========
Basic loss per common share $(0.00269) $(0.00237) $(0.00222)
========= ========= =========
Cash dividends per share $ - - $ - - $ - -
===== ===== =====
Weighted average number of common
shares outstanding 3,066,000 3,066,000 3,066,000
========= ========= =========
The accompanying notes are an integral
part of the financial statements.
</TABLE>
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<PAGE> 10
SILVER MOUNTAIN LEAD MINES, INC.
UNAUDITED STATEMENTS OF CASH FLOWS
For the years ended December 31, 1997, 1996 and 1995
------------
<TABLE>
<CAPTION>
1997 1996 1995
-------- -------- --------
<S> <C> <C> <C>
Operating activities:
Net loss $ (8,250) $ (7,276) $ (6,800)
Change in:
Accounts payable 366 (2,202) 4,014
-------- -------- --------
Net cash used by operating activities (7,884) (9,478) (2,786)
-------- -------- --------
Net decrease in cash and cash equivalents (7,884) (9,478) (2,786)
Cash and cash equivalents at beginning of period 52,087 61,565 64,351
-------- -------- --------
Cash and cash equivalents at end of period $ 44,203 $ 52,087 $ 61,565
======== ======== ========
Supplemental disclosure of cash flow information
Cash paid during period for income tax $ 30 $ 30 $ 33
======== ======== ========
The accompanying notes are an integral part of the financial statements.
</TABLE>
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<PAGE> 11
SILVER MOUNTAIN LEAD MINES, INC.
NOTES TO FINANCIAL STATEMENTS
--------------------
NOTE 1: SIGNIFICANT ACCOUNTING POLICIES
The Company is presently inactive and is no longer considered to be
in the exploration and development stage. All costs are presently
being expensed as incurred.
No provision has been made for depreciation since the Company is
inactive.
The Company considers cash equivalents to consist of highly liquid
investments with a remaining maturity of three months or less when
purchased.
Property, plant and equipment are stated at the lower of cost or
estimated net realizable value. Maintenance, repairs and renewals
are charged to operations. Betterments of a major nature would be
capitalized. When assets are retired or sold, the costs and
related allowances for depreciation and amortization are eliminated
from the accounts and any resulting gain or loss is reflected in
operations. Idle facilities, placed on a standby basis, are
carried at the lower of net book value or estimated net realizable
value. Effective January 1, 1996, the Company adopted the
provisions of Statement of Financial Accounting Standards, No. 121,
"Accounting for the Impairment of Long-Lived Assets and for Long-
Lived Assets to be Disposed Of" (SFAS No. 121). The adoption of
the provisions of SFAS No. 121 had no material effect on the
results of operations or financial condition of the Company.
In February 1997, Statement of Financial Accounting Standards No.
128 (SFAS 128), "Earnings Per Share" was issued. SFAS 128
established standards for computing and presenting earnings per
share and simplifies the existing standards, including the
presentation of basic earnings per share in lieu of primary
earnings per share. The Company adopted the provisions of SFAS 128
in 1997, and all prior period earnings per share calculations have
been restated to conform with SFAS 128. Due to the lack of
existence of common stock equivalents in 1997, 1996, and 1995,
there is no difference between the calculation of basic and primary
earnings per share.
NOTE 2: PROPERTY, PLANT AND EQUIPMENT
The Company acquired its property located in the Coeur d'Alene
Mining District, Shoshone County, Idaho, for cash of $494.50 and
through issuance of 3,066,000 shares of capital stock. A total of
316,000 shares were issued to officers and/or directors at the date
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<PAGE> 12
of issuance including 92,600 shares issued to current officers
and/or directors.
NOTE 3: LONG-TERM LIABILITIES
The notes payable to Hecla Mining Company represent noninterest
bearing advances for annual assessment work which are to be repaid
only from production should a commercial ore deposit be discovered
and mined. At December 31, 1997 and 1996, the Company owed Hecla
Mining Company $63,927 for such advances.
NOTE 4: RELATED PARTIES
At February 9, 1995, Bunker Limited Partnership and Hecla Mining
Company, pursuant to the agreement dated June 15, 1954, each owned
an undivided 37.5% interest in the Silver Mountain property. Stock
ownership of the two companies at February 9, 1995, was as follows:
Shares Held as of Percent of
February 9, 1995 Ownership
----------------- ----------
Bunker Limited Partnership 896,000 29.22%
Hecla Mining Company 115,000 3.75%
--------- -----
Total 1,011,000 32.97%
========= =====
On February 10, 1995, Hecla Mining Company acquired Bunker Limited
Partnership's 37.5% undivided interest in the Silver Mountain
property and its entire stock interest in the Company. Hecla
currently holds 1,011,000 or 32.97% shares of common stock of the
Company.
From November 1, 1982, to December 31, 1994, Bunker Limited
Partnership provided the Company with general accounting services.
Commencing January 1, 1995, Hecla Mining Company (which owned
32.97% of common stock from February 10, 1995 to December 31, 1997)
provided accounting and legal services to Silver Mountain. In 1996
and 1997, Silver Mountain paid Hecla Mining Company $9,000 each
year for these services. At December 31, 1997, the Company had
obligations to Hecla Mining Company totaling $2,622 and $63,927 for
accounts payable and notes payable, respectively. At December 31,
1996, the Company had obligations to Hecla Mining Company totaling
$2,256 and $63,927 for accounts payable and notes payable,
respectively.
NOTE 5: FAIR VALUE OF FINANCIAL INSTRUMENTS
The following estimated fair value amounts have been determined
using available market information and appropriate valuation
methodologies. However, considerable judgment is required to
interpret market data and to develop the estimates of fair value.
Accordingly, the estimates presented herein are not necessarily
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<PAGE> 13
indicative of the amounts the Company could realize in a current
market exchange.
The following methods and assumptions were used to estimate the
fair value of each class of financial instruments for which it is
practicable to estimate that value. Potential income tax
ramifications related to the realization of unrealized gains and
losses that would be incurred in an actual sale or settlement have
not been taken into consideration.
The carrying amounts for cash and cash equivalents and current
liabilities are a reasonable estimate of their fair values.
The estimated fair values of financial instruments are as follows:
<TABLE>
<CAPTION>
December 31,
-------------------------------------------------
1997 1996
----------------------- ---------------------
Carrying Fair Carrying Fair
Amounts Value Amounts Value
---------- -------- -------- --------
<S> <C> <C> <C> <C>
Financial assets
Cash and cash equivalents $ 44,203 $ 44,203 $ 52,087 $ 52,087
Financial liabilities
Accounts payable 2,622 2,622 2,256 2,256
Note payable - Hecla Mining Co. 63,927 (A) 63,927 (A)
(A) Fair value information is not available.
</TABLE>
NOTE 6: CONTINGENCIES
On August 28, 1997, the United States Department of Justice filed a
Motion for Leave to File a First Amended Complaint which sought to
add the Company and 16 other companies in litigation pending in the
United States District Court in and for the State of Idaho,
captioned United States of America, Plaintiff, v. ASARCO
Incorporated, et al., Defendants, Civil No. 96-0122-N-EJL. The
litigation involves a claim under the Comprehensive Environmental
Response, Compensation and Liability Act by the United States of
America for alleged damages to the environment and associated
natural resources through the Company's historic mining activities
in and near the Bunker Hill Superfund Site and the Coeur d'Alene
River watershed located in North Idaho. The court has not yet
ruled upon the motion.
Item 9. DISAGREEMENTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
Not applicable.
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<PAGE> 14
PART III
Item 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
The names, ages and present principal occupation of management's
nominees, other directorships held by them and the year each first
became a director are set forth in the table below.
<TABLE>
<CAPTION>
Name, Age & Date First Elected Principal Occupation & Directorships
- ------------------------------ ------------------------------------
<S> <C>
MICHAEL B. WHITE Vice President - Secretary and General
Director since March 20, 1995 Counsel of Hecla Mining Company,
Age 47 Coeur d'Alene, Idaho
JOHN P. STILWELL Vice President - Chief Financial
Director since January 2, 1996 Officer of Hecla Mining Company,
Age 45 Coeur d'Alene, Idaho
VINCENT R. NEWBURY Independent prospector, Desert Hot
Director since 1952 Springs, California
Age 86
EXECUTIVE OFFICERS
Name Age Office
- --------------------------------------------------------------------------
Michael B. White 47 President
John P. Stilwell 45 Vice President
Nathaniel K. Adams 36 Secretary
</TABLE>
Item 11. EXECUTIVE COMPENSATION
Silver Mountain paid no remuneration in 1997 to its officers and
directors. Any compensation that may have been paid to the
officers and directors of Silver Mountain for their services to the
Company was paid by their respective principal employers. Silver
Mountain has no compensation plans for its officers and directors
and there are no stock options outstanding.
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<PAGE> 15
Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS &
MANAGEMENT
As of December 31, 1997, there were 3,066,000 shares of the
Company's common stock, par value $.10 per share outstanding.
The table below sets forth, as of December 31, 1997, the number of
shares of the Company's outstanding common stock held by Hecla
Mining Company.
<TABLE>
<CAPTION>
Name & Address of Amount and Nature
Beneficial Owner of Beneficial Ownership Percent of Class
- ----------------- ----------------------- ----------------
<S> <C> <C>
Hecla Mining Company 1,011,000 shares direct 32.97%
6500 Mineral Drive (Sole voting & investment
Coeur d'Alene, ID 83815 power)
</TABLE>
The Company is not aware of any person (including any "group" as
that term is used in Section 13 (d) (3) of the Securities Exchange
Act of 1934), other than as set forth above, who is the beneficial
owner of more than five percent of the Company's common stock as of
December 31, 1997.
On February 10, 1995, Hecla Mining Company acquired Bunker Limited
Partnership's 37.5% undivided interest in the Silver Mountain
property and their entire stock interest in the Company. Hecla
currently holds 1,011,000 or 32.97% shares of common stock of the
Company.
The table below sets forth, as of December 31, 1997, the number of
shares of the Company's outstanding stock held by the director
nominees individually and by all directors and officers of the
Company as a group:
<TABLE>
<CAPTION>
Amount and Nature
Name of Beneficial Ownership Percent of Class
- ---- ----------------------- ----------------
<S> <C> <C>
Vincent R. Newbury 75,000 shares direct* 2.45%
</TABLE>
*The direct beneficial owner is believed to have sole voting and
investment power.
Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
From November 1, 1982 to December 31, 1994, Bunker Limited
Partnership provided the Company with general accounting services.
Commencing January 1, 1995, Hecla Mining Company (which owned
32.97% of common stock from February 10, 1995 to December 31, 1997)
provided accounting and legal services to Silver Mountain. In 1996
and 1997, Silver Mountain paid Hecla Mining Company $9,000 each
year for these services. At December 31, 1997, the Company had
obligations to Hecla Mining Company totaling $2,622 and $63,927 for
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<PAGE> 16
accounts payable and notes payable, respectively. At December 31,
1996, the Company had obligations to Hecla Mining Company totaling
$2,256 and $63,927 for accounts payable and notes payable,
respectively.
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<PAGE> 17
PART IV
Item l4. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON
FORM 8-K
(a) (1) and (2) All Financial Statements:
Unaudited Balance Sheets, December 31, 1997 and
1996
Unaudited Statements of Income and Accumulated
Surplus for the Years Ended December 31, 1997,
1996 and 1995
Unaudited Statements of Cash Flows for the Years
Ended December 31, 1997, 1996 and 1995
Notes to Financial Statements
(a) (3) and (c) Exhibits:
The exhibit numbers in the following list
correspond to the numbers assigned to such
exhibits in Item 601 of Regulation S-K.
Number Description of Exhibits
------ -----------------------
27 Financial Data Schedule
(b) Reports on Form 8-K:
None
(d) Financial Statements Required by Regulations S-X
which are excluded from the annual report to
shareholders:
None
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<PAGE> 18
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Registrant has duly caused
this annual report to be signed on its behalf by the undersigned,
thereunto duly authorized, on March 24, 1998.
SILVER MOUNTAIN LEAD MINES, INC.
By /s/ Michael B. White
-------------------------------
Michael B. White, President
and Director
Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed below by the following persons on
behalf of the Registrant and in the capacities and on the dates
indicated.
/s/ Michael B. White 3/24/98 /s/ John P. Stilwell 3/24/98
- ------------------------------- ------------------------------
Michael B. White Date John P. Stilwell Date
President and Director Vice President and Director
Chief Executive Officer Chief Accounting Officer
/s/ Nathaniel K. Adams 3/24/98 /s/ Vincent R. Newbury 3/24/98
- ------------------------------- -------------------------------
Nathaniel K. Adams Date Vincent R. Newbury Date
Secretary Director
/s/ David F. Wolfe 3/24/98
- -------------------------------
David F. Wolfe Date
Chief Financial Officer
-18-
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> DEC-31-1997
<CASH> 44,203
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 44,203
<PP&E> 337,154
<DEPRECIATION> 0
<TOTAL-ASSETS> 381,357
<CURRENT-LIABILITIES> 2,622
<BONDS> 0
0
0
<COMMON> 306,600
<OTHER-SE> 8,208
<TOTAL-LIABILITY-AND-EQUITY> 381,357
<SALES> 0
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<CGS> 0
<TOTAL-COSTS> 10,136
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<INCOME-PRETAX> (8,220)
<INCOME-TAX> 30
<INCOME-CONTINUING> (8,250)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (8,250)
<EPS-PRIMARY> (0.003)
<EPS-DILUTED> (0.003)
</TABLE>
