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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Date of Report (Date of Earliest Event Reported): September 7, 1999
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MK GOLD COMPANY
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(Exact Name of Registrant as Specified in its Charter)
DELAWARE
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(State or Other Jurisdiction of Incorporation)
0-23042 82-0487047
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(Commission File Number) (I.R.S. Employer Identification No.)
60 EAST SOUTH TEMPLE, SUITE 2100,
SALT LAKE CITY, UTAH 84111
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(Address of Principal Executive Offices) (Zip Code)
(801) 297-6900
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(Registrant's Telephone Number, Including Area Code)
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(Former Name or Former Address, if Changed Since Last Report)
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NY2:\863324\01
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Item 5. Other Events.
The information set forth in the press release issued on September 7,
1999 by MK Gold Company, attached hereto as Exhibit 99.1, is incorporated herein
by reference.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
99.1 Press release of MK Gold Company dated September 7, 1999.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
MK GOLD COMPANY
By: /s/ G. Frank Joklik
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G. Frank Joklik,
Chairman of the Board
Date: December 28, 1999
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EXHIBIT INDEX
Item No.
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99.1 Press release of MK Gold Company dated September 7, 1999.
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Exhibit 99.1
MK GOLD COMPANY
60 East South Temple
Salt Lake City, Utah 84111
Tuesday, September 7, 1999
Company Press Release
MK GOLD COMPANY CLARIFIES PRIOR
ANNOUNCEMENT
SALT LAKE CITY, UTAH - September 7, 1999 - As previously announced, MK Gold
Company (Nasdaq:MKAU) has purchased the entire share capital and subordinated
debt of Riomin Exploraciones S.A. (Riomin) from Rio Tinto Metals Limited for US
$42,000,000. In addition, when the copper price exceeds $0.80 per pound, MK Gold
will pay Rio Tinto a royalty of 1.5% of copper sales revenue from this project.
To fund this acquisition, MK Gold entered into an agreement to sell to Leucadia
National Corporation all of its remaining authorized but unissued shares of MK
Gold, approximately 18 million shares, at a purchase price of $0.8753 per share,
representing the per share book value at June 30, 1999, for an aggregate
purchase price of approximately $15.8 million. This purchase is subject to
regulatory approval. To facilitate MK Gold's acquisition of Riomin, MK Gold
borrowed from Leucadia approximately $15.8 million pursuant to a promissory note
that will be returned to MK Gold as payment for the stock purchase. The balance
of the purchase price was obtained from a $20 million borrowing under MK Gold's
existing credit facility with Leucadia, and working capital of MK Gold. Upon
issuance of stock to Leucadia, Leucadia's interest in MK Gold will increase from
approximately 46.7% to approximately 72.5%. MK Gold has granted Straits
Resources Ltd., Sydney, Australia, a one-year option to purchase 35% of Riomin
at MK Gold's cost, plus interest.
Riomin holds the exploration and mining rights to the Las Cruces copper deposit
in the pyrite belt of Spain. Rio Tinto's Technical Services group, with support
from consultants including Fluor-Daniel-Wright and Dynatec, recently completed
the first phase of a feasibility study for the project. The study indicates the
existence of a resource of 15.2 million metric tonnes grading 6.1% copper that
is overlain by a gold-bearing gossan (which has not been evaluated) and by 150
meters of unconsolidated overburden. This resource calculation was based upon
the analysis of 279 drill holes totaling 272,000 feet. Following permitting,
engineering and construction, the Las Cruces mine could produce 65,000 metric
tonnes of LME grade A cathode copper per year. The mine life is estimated at 14
years. Actual mining will be subject to permitting, engineering and
construction.
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This press release and statements by the Company in reports to its shareholders
and public filings, as well as oral public statements by Company representatives
may contain certain forward-looking information that is subject to certain risks
and uncertainties that could cause actual results to differ materially from
those projected. Without limitation, these risks and uncertainties include the
ability to receive all necessary permits and regulatory authorizations,
non-performance by contractors, higher than estimated construction and
engineering costs, economic recessions, fluctuations in copper, gold and other
metal prices, risks associated with closure and reclamation of mines and the
ability of the Company to acquire and fund new mining projects. Readers should
review and consider the various disclosures made by the Company in this press
release and in its reports to its shareholders and periodic reports on Forms
10-K and 10-Q. MK Gold Company is engaged in the business of mining gold,
contract mining, and exploring for and acquiring precious and base mineral
properties. The Company is incorporated in Delaware and its executive offices
are located at 60 East South Temple, Suite 2100, Salt Lake City, Utah 84111.
For further information, contact John Farmer at 801-297-6900.
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