<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, 1998
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 $0.10 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 26, 1999, 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
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<PAGE> 3
Partnership and Hecla continued management of the Silver Mountain property.
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.
Hecla Mining Company provides accounting and legal services to Silver Mountain.
In 1998, 1997 and 1996, Silver Mountain paid Hecla Mining Company $9,000 each
year for these services. At December 31, 1998, the Company had obligations to
Hecla Mining Company totaling $2,306 and $63,927 for accounts payable and notes
payable, respectively. 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.
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
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<PAGE> 4
Coeur d'Alene River watershed located in North Idaho. In March 1998, the Court
denied the motion to add parties including the Company. Although the Court
stated that the plaintiff could renew their motion to add parties following the
Court's ruling on a number of substantive motions pending before the Court, a
later ruling by the Court indicated a strong desire not to have additional
parties added to this proceeding.
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, some of which were traded for patented mineral
rights in a land exchange with the U.S. Forest Service, thereby changing its
property ownership from a 25% interest in 24 patented claims, 93 unpatented
claims, and 160 acres of mineral rights to a 25% interest in 24 patented mining
claims and 268 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. In March 1998, the Court denied
the motion to add parties including the Company. Although the Court stated that
the plaintiff could renew their motion to add parties following the Court's
ruling on a number of substantive motions pending before the Court, a later
ruling by the Court indicated a strong desire not to have additional parties
added to this proceeding.
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 26, 1999, the bid and ask price for the
Company's common stock was five cents and twelve 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 26, 1999, there were approximately 974 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 (unaudited)
The Company is an inactive company. A summary of its operations for the five-
year period ended December 31, 1998 is as follows:
<TABLE>
<CAPTION>
1998 1997 1996 1995 1994
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Interest and other
income $ 2,372 $ 1,916 $ 2,400 $ 2,478 $ 1,685
--------- --------- --------- --------- ---------
Administrative expense 9,169 10,136 9,646 9,245 1,390
--------- --------- --------- --------- ---------
Income (loss) from
operations before
income taxes (6,797) (8,220) (7,246) (6,767) 295
Provision for income
taxes 30 30 30 33 10
--------- --------- --------- --------- ---------
Net income (loss) $ (6,827) $ (8,250) $ (7,276) $ (6,800) $ 285
--------- --------- --------- --------- ---------
Basic income (loss)
per common share $(0.00223) $(0.00269) $(0.00237) $(0.00222) $ 0.00009
========= ========= ========= ========= =========
Total assets $ 374,214 $ 381,357 $ 389,241 $ 398,719 $ 401,505
========= ========= ========= ========= =========
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, 1998.
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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 1998 compared to 1997. Cash and cash equivalents decreased $7,143 (16%)
from $44,203 at December 31, 1997, to $37,060 at December 31, 1998. Working
capital declined $6,827 (16%) from $41,581 at December 31, 1997, to $34,754 at
December 31, 1998. The decreases in cash and cash equivalents and working
capital are primarily attributable to administrative expenses, partly offset by
a $464 increase in interest income.
The 1998 net loss of $6,827 was $1,423 less than the net loss in 1997 which
totaled $8,250. This decreased loss was primarily attributable to a $967
decrease in administrative expenses and a $456 increase 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, 1998, 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, 1998 and 1997
------------
<TABLE>
<CAPTION>
ASSETS
1998 1997
--------- ---------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 37,060 $ 44,203
--------- ---------
Total current assets 37,060 44,203
--------- ---------
Property, plant and equipment
Mining claims 307,095 307,095
Deferred development costs 30,059 30,059
--------- ---------
337,154 337,154
--------- ---------
Total assets $ 374,214 $ 381,357
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable - Hecla Mining Company $ 2,306 $ 2,622
--------- ---------
Total current liabilities 2,306 2,622
--------- ---------
Long-term liabilities:
Note payable - Hecla Mining Company 63,927 63,927
--------- ---------
Total liabilities 66,233 66,549
--------- ---------
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 1,381 8,208
--------- ---------
307,981 314,808
--------- ---------
Total liabilities and stockholders' equity $ 374,214 $ 381,357
========= =========
</TABLE>
The accompanying notes are an integral part
of the financial statements.
-8-
<PAGE> 9
SILVER MOUNTAIN LEAD MINES, INC.
UNAUDITED STATEMENTS OF INCOME AND ACCUMULATED SURPLUS
For the years ended December 31, 1998, 1997, and 1996
----------
<TABLE>
<CAPTION>
1998 1997 1996
--------- --------- ---------
<S> <C> <C> <C>
Income:
Transfer fees $ 16 $ 24 $ 96
Interest income 2,356 1,892 2,304
--------- --------- ---------
Total income 2,372 1,916 2,400
--------- --------- ---------
Expenses:
Accounting and legal fees 9,000 9,000 9,000
Office expenses (89) 115 96
Filing fees - - 300 250
Property taxes 8 30 - -
Stock transfer expense 250 691 300
--------- --------- ---------
Total expenses 9,169 10,136 9,646
Loss from operations before
provision for income taxes (6,797) (8,220) (7,246)
Provision for income taxes 30 30 30
--------- --------- ---------
Net loss (6,827) (8,250) (7,276)
Accumulated surplus at beginning
of year 8,208 16,458 23,734
--------- --------- ---------
Accumulated surplus at end of year $ 1,381 $ 8,208 $ 16,458
========= ========= =========
Basic loss per common share $(0.00223) $(0.00269) $(0.00237)
========= ========= =========
Cash dividends per share $ - - $ - - $ - -
========= ========= =========
Weighted average number of common
shares outstanding 3,066,000 3,066,000 3,066,000
========= ========= =========
</TABLE>
The accompanying notes are an integral
part of the financial statements.
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<PAGE> 10
SILVER MOUNTAIN LEAD MINES, INC.
UNAUDITED STATEMENTS OF CASH FLOWS
For the years ended December 31, 1998, 1997 and 1996
-------------
<TABLE>
<CAPTION>
1998 1997 1996
--------- --------- ---------
<S> <C> <C> <C>
Operating activities:
Net loss $ (6,827) $ (8,250) $ (7,276)
Change in:
Accounts payable - Hecla Mining Company (316) 366 (2,202)
--------- --------- ---------
Net cash used by operating activities (7,143) (7,884) (9,478)
--------- --------- ---------
Net decrease in cash and cash equivalents (7,143) (7,884) (9,478)
Cash and cash equivalents at beginning
of period 44,203 52,087 61,565
--------- --------- ---------
Cash and cash equivalents at end of period $ 37,060 $ 44,203 $ 52,087
========= ========= =========
Supplemental disclosure of cash flow
information:
Cash paid during period for income tax $ 30 $ 30 $ 30
========= ========= =========
</TABLE>
The accompanying notes are an integral part of the financial statements.
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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 1998, 1997, and 1996, 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
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<PAGE> 12
316,000 shares were issued to officers and/or directors at the date of issuance.
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, 1998 and 1997,
the Company owed Hecla Mining Company $63,927 for such advances.
NOTE 4: RELATED PARTIES
Hecla Mining Company (which owns 32.97% of the Company's common stock) provides
accounting and legal services to Silver Mountain. In 1998, 1997 and 1996, Silver
Mountain paid Hecla Mining Company $9,000 each year for these services. At
December 31, 1998, the Company had obligations to Hecla Mining Company totaling
$2,306 and $63,927 for accounts payable and notes payable, respectively. 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.
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 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.
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<PAGE> 13
The estimated fair values of financial instruments are as follows:
<TABLE>
<CAPTION>
December 31,
------------------------------------------
1998 1997
------------------------------------------
Carrying Fair Carrying Fair
Amounts Value Amounts Value
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Financial assets
Cash and cash equivalents $ 37,060 $ 37,060 $ 44,203 $ 44,203
Financial liabilities
Accounts payable - Hecla Mining Co. 2,306 2,306 2,622 2,622
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. In March 1998, the Court denied
the motion to add parties including the Company. Although the Court stated that
the plaintiff could renew their motion to add parties following the Court's
ruling on a number of substantive motions pending before the Court, a later
ruling by the Court indicated a strong desire not to have additional parties
added to this proceeding.
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.
Name, Age & Date First Elected Principal Occupation & Directorships
- ------------------------------ ------------------------------------
MICHAEL B. WHITE Vice President - Secretary and
Director since March 20, 1995 General Counsel of Hecla Mining
Age 48 Company, Coeur d'Alene, Idaho
JOHN P. STILWELL Vice President - Chief Financial
Director since January 2, 1996 Officer of Hecla Mining Company,
Age 46 Coeur d'Alene, Idaho
EXECUTIVE OFFICERS
Name Age Office
- -----------------------------------------------------------------
Michael B. White 48 President
John P. Stilwell 46 Vice President
Nathaniel K. Adams 37 Secretary
Item 11. Executive Compensation
Silver Mountain paid no remuneration in 1998 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, 1998, 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, 1998, the number of shares of the
Company's outstanding common stock held by Hecla Mining Company.
Name & Address of Amount and Nature
Beneficial Owner of Beneficial Ownership Percent of Class
- ----------------- ----------------------- ----------------
Hecla Mining Company 1,011,000 shares direct 32.97%
6500 Mineral Drive (Sole voting & investment
Coeur d'Alene, ID 83815 power)
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, 1998.
As of December 31, 1998, no shares of the Company's outstanding stock were held
by any director individually or by all directors and officers of the Company as
a group.
Item 13. Certain Relationships and Related Transactions
Not applicable.
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<PAGE> 16
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, 1998 and
1997
Unaudited Statements of Income and Accumulated
Surplus for the Years Ended December 31, 1998,
1997 and 1996
Unaudited Statements of Cash Flows for the Years
Ended December 31, 1998, 1997 and 1996
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> 17
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 19,
1999.
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 3/19/99 /s/ John P. Stilwell 3/19/99
- ------------------------------- ------------------------------
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 3/19/99 /s/ David F. Wolfe 3/19/99
- ------------------------------- ------------------------------
Nathaniel K. Adams Date David F. Wolfe Date
Secretary Chief Financial Officer
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<PAGE> 18
EXHIBIT INDEX
-------------
Exhibit
No. Description
- -------- ---------------------------------
27 Financial Data Schedule
-18-
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<CASH> 37,060
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 37,060
<PP&E> 337,154
<DEPRECIATION> 0
<TOTAL-ASSETS> 374,214
<CURRENT-LIABILITIES> 2,306
<BONDS> 0
0
0
<COMMON> 306,600
<OTHER-SE> 1,381
<TOTAL-LIABILITY-AND-EQUITY> 374,214
<SALES> 0
<TOTAL-REVENUES> 2,372
<CGS> 0
<TOTAL-COSTS> 9,169
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (6,797)
<INCOME-TAX> 30
<INCOME-CONTINUING> (6,827)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (6,827)
<EPS-PRIMARY> (.002)
<EPS-DILUTED> (.002)
</TABLE>
