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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: long-gone who wrote (12035)	5/22/1998 9:57:00 AM
From: Bucky Katt	Read Replies (4) \| Respond to of 116824

Another one bites the dust. This one was a favorite of the Gold Stock Analyst. I repeat, WAS>>> Friday May 22, 9:17 am Eastern Time Company Press Release SOURCE: Dakota Mining Corporation Dakota Mining Corporation Subsidiaries Announce Voluntary Reorganization Under Chapter XI of the Bankruptcy Code DENVER, May 22 - The Board of Directors of Dakota Mining Corporation (OTC BB:DAKMF - news; ''Dakota'') or (the ''Company'') announced today that its sole gold producing subsidiary, USMX of Alaska, Inc., (''USMXAK'') filed voluntarily in Denver, Colorado to reorganize under Chapter XI of the Bankruptcy Code. Dakota and its subsidiaries have not been able to resolve their severe liquidity and other financial problems. Neither Dakota nor its other operating subsidiaries have filed for bankruptcy at this time, although they may determine to do so in the future as a result of their financial conditions. Alan R. Bell, President and Chief Executive Officer of Dakota, stated, ''We have been in discussions with our debenture holders, principal secured lenders and creditors for several weeks now, but have failed to reach agreement on a debt restructure that would allow the Company to continue as a going concern.'' The $1.1 million 90-day interim financing facility provided by N M Rothschild & Sons, Limited (''Rothschild'') has expired, as a result of which Rothschild has applied the cash collateral account to satisfy that loan. Dakota and its subsidiaries now owe an aggregate of in excess of $38 million of which approximately $18.4 million is owed to the holders of Dakota's convertible debentures, $9.7 million is owed to Rothschild, $3.7 million is owed to Gerald Metals, Inc. and $5.4 is owed to D. H. Blattner and Sons (''Blattner''). Of these amounts, USMXAK owes on a secured basis $9.7 million to Rothschild, $1.7 million to Blattner and $0.7 million to other trade creditors. Bell continued, ''Daily operations will continue in the production of gold at Illinois Creek. Operations at other Dakota subsidiaries have already been discontinued except for limited reclamation and compliance activities.'' Dakota continues to request that various state and federal agencies permit it to draw down on existing cash bonds for the purpose of funding reclamation and permit obligations at certain mine sites. The Company has approximately $9 million in cash bonds associated with its Illinois Creek, Stibnite, Gilt Edge and Goldstrike mine sites. There can be no assurance that the Company will succeed in obtaining the release of these funds or that the funds will be adequate to satisfy all compliance obligations. Statements in this release which are not historical data are forward looking and involve a number of risks and uncertainties, including but not limited to the price of gold, production, construction and permitting or regulatory delays, reserve estimation of tonnage, grade and metallurgical recoveries, exploration success and reserve growth, litigation, capital costs and other risks that are detailed in the Company's SEC filings. For further information, please contact Alan R. Bell, President and Chief Executive Officer (303) 573-0221, FAX (303) 573-1012. SOURCE: Dakota Mining Corporation