Back to GetFilings.com
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, 1999
OR
[ ] TRANSACTION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transaction period from to
Commission file number 1-316
INDEPENDENCE LEAD MINES COMPANY
(Exact name of registrant as specified on its charter)
ARIZONA 82-0131980
(State or other jurisdiction (IRS Employer Identification No.)
of incorporation)
P O BOX 717
WALLACE, IDAHO 83873
(Address of principal executive offices)
Registrant's telephone number, including area code: (208) 753-2525
Securities registered pursuant to Section 12 (b) of the Act:
Common Non-Assessable Stock,
Par Value $1.00 per Share None
Title of each class Name of each exchange on
which registered
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 [ ]
As of December 31, 1999, the aggregate market value of the voting stock
held by non-affiliates of the registrant was $1,917,750.
(APPLICABLE ONLY TO CORPORATE REGISTRANTS)
As of December 31, 1999, there were 4,333,357 shares outstanding of the
registrant's $1.00 par value common stock; authorized common shares of
5,000,000.
DOCUMENTS INCORPORATED BY REFERENCE
The following documents are incorporated by reference in the indicated
parts of this Form 10-K:
NONE
INDEPENDENCE LEAD MINES COMPANY
Form 10-K Annual Report
For the year ended December 31, 1999
TABLE OF CONTENTS
PART I
Page
Item 1. Business . . . . . . . . . . 1
Item 2. Properties . . . . . . . . . 2
Item 3. Legal Proceedings . . . . . . . . 2
Item 4. Submission of Matters to a Vote of Security Holders . 3
PART II
Item 5. Market for the Registrant's Common Stock and
Related Stockholder Matters . . . . . . 3
Item 6. Selected Financial Data . . . . . . . 4
Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations . . . . 4
Item 8. Financial Statements and Supplementary Data . . . 4
Item 9. Disagreements on Accounting and Financial Disclosure . 4
Index to Financial Statements . . . . . 5
PART III
Item 10. Directors and Executive Officers of the Registrant . 10
Item 11. Executive Compensation . . . . . . . 11
Item 12. Security Ownership of Certain Beneficial
Owners and Management . . . . . . . 11
Item 13. Certain Relationships and Related Transaction . . 11
PART IV
Item 14. Exhibits, Financial Statement Schedules
And Reports on Form 8-K . . . . . . . 12
Exhibit Index . . . . . . . . . 13
Schedule of Property, Plant and Equipment . . . 14
Signature Page . . . . . . . . . 15
[The balance of this page has been intentionally left blank]
(i)
INDEPENDENCE LEAD MINES COMPANY
FORM 10-K ANNUAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 1999
PART I
ITEM 1. BUSINESS.
Independence Lead Mines Company (the "Company") is a corporation
organized under the laws of the State of Arizona on September 16,
1929. The Company is the owner of fifteen patented and seventeen
unpatented mining claims. This claim group (the "property") is
situated Northwest of Hecla Mining Company's Lucky Friday Mine in the
Coeur d'Alene Mining District, Shoshone County Idaho. Adjacent is the
community of Mullan and U.S. Interstate Highway 90.
Pursuant to the terms of an agreement dated February 8, 1968, among
Hecla Mining Company ("Hecla"), Day Mines, Inc. ("Day"), Abot Mining
Company ("Abot") and the Company (the "Unitization Agreement"), the
Eastern portion of the Company's Property (approximately five-eighths
of the total area of the Property) was unitized with certain adjoining
and near-by properties owned by the Day and Abot into a unitized area,
consisting of 55 claims, (known as the "DIA Area"). Under the terms of
the Unitization Agreement, ores and minerals in place are owned by the
parties thereto in the following percentages:
Day (now Hecla by merger) 47.70%
Independence 46.30%
Abot 6.00%
By a second agreement also dated February 8, 1968, (the "Lease
Agreement"), Hecla leased the DIA Area for a period of fifty (50)
years, subject to a 30-year extension, for the purpose of conducting
mineral exploration and development of the DIA Area and mining such
commercial ore as may be discovered in the DIA Area by Hecla. Since
inception of the Lease Agreement, Hecla has performed exploration and
development work on the DIA Project at a cost of more than $30,279,021
at year end December 31, 1999. To date exploration has revealed a
resource estimate of 7,068,510 tons. Ore production for 1999 was
268,375 tons and averaged 15.84 ounces silver, 8.96 % lead and 1.35%
zinc per ton.
The Lease Agreement provides that all costs and expenses incurred in
the exploration, development and operation of the DIA Area are to be
paid by Hecla subject to the right of Hecla to be reimbursed for such
costs and expenses, together with all advance royalties paid, out of
any future net profits realized from the operation of the DIA Area.
After recovery of Hecla's costs and expenses and amounts paid as
advance royalties, and the establishment of a three month working
capital reserve, net profit royalties are to be paid to the Company
and the other property owners as follows:
Day (now Hecla by Merger) 19.08%
Independence 18.52%
Abot 2.40%
Hecla, as the lessee, will retain the remaining sixty percent (60%) of
any net profits realized. Under the terms of the Unitization
Agreement, one-half of the first net profit royalties received by the
Company are to be paid over to Day (now Hecla) until Day recovers the
sum of $450,000. The relationship of the parties to the Agreement may,
under certain circumstances, be converted to a joint venture at the
option of the property owners, where after the property owners would
become participating, non-operating working interest owners who would
share profits and expenses in connection with the DIA Area in the same
ratio as exists pursuant to lease arrangement with Hecla described
above.
Until Hecla commences to pay net profit royalties and during such
period as the Lease Agreement is in effect, Hecla is obligated to pay
an advance royalty to the Company of $750 per month subject to
increase to $1,500 if production for the DIA Area exceeds 2,000 tons
per month.
1
Pursuant to the terms of the February 8, 1968, agreements, Hecla
will be obligated to pay a royalty of 18.52 percent of defined net
profits after Hecla has recouped its costs to explore and develop this
property from the new discovery to Independence Lead Mines Company.
The Company has no patents, licenses, franchises or concessions, which
are considered by the Company to be of importance. The business is not
of a seasonal nature. Since the potential products are traded in the
open market, the Company has no control over the competitive
conditions in the industry. There is no backlog of orders.
There are numerous Federal and State laws and regulation related to
environmental protection which have direct application to mining and
milling activities. The more significant of these laws deal with mined
land reclamation and waste-water discharge from mines and milling
operations. The Company does not believe that these laws and
regulations as presently enacted will have a direct material adverse
effect on its operations.
The current officers and directors of the Company serve without
compensation and are not considered by the Company to be employees.
The western portion of the Company's property is not under the DIA
Area agreement. West Independence, as it is called, consists of 10
patented mining claims of which four (4) claims are partly included in
the DIA Area agreement. Patented acres owned are listed below.
West Independence Acres 81.362
East Independence Acres 91.808
Total Acres 173.170
In 1999 the Company acquired 38,436 shares on the open market at an
average price of $0.49 per share. These shares are carried as treasury
stock by the Company.
ITEM 2. PROPERTIES
By an agreement dated February 8, 1968 among the Company and the
owners of other adjacent or neighboring mining properties, the Company
and the owners of the other properties entered into certain
agreements, the general effect of which was to establish certain
vertical boundaries between their respective properties and to waive
certain existing or potential claims to extralateral rights to veins
or ores found outside of the vertical boundaries of their respective
properties. The Property of the Company is subject to this agreement.
Pursuant to existing law, the Company is required to perform the
equivalent of $100 of work each year on each of its 14 unpatented
claims included in the agreements mentioned in paragraph above, or to
pay $100.00 per claim as a rental fee in order to maintain possessory
title to such properties. These requirements are performed by Hecla
Mining Company under the terms of the February 8, 1968 agreements
described in Item 1 of this report.
In addition, the three (3) claims in West Independence, not included
in the above agreements, are paid for directly by Independence Lead
Mine.
Further information regarding the Properties of the Company is set
forth in this report under "Item 1. Business" and is incorporated
herein by reference.
ITEM 3. LEGAL PROCEEDINGS
The Company reported in its Form 10-K for the fiscal year ending
December 31, 1998, that two legal proceedings were pending involving
the Company. H.F.Magnuson & Company filed suit in Shoshone County,
Idaho in case #CV98-34222 to enforce two promissory notes involving a
total sum of $86,100 plus accrued interest of $12,632 as of December
31,1998. The notes were executed by Independence Lead Mine Company's
former directors, R.M.MacPhee and Dale Lavigne in favor of
H.F.Magnuson &
2
Company. H.F.Magnuson & Company, the Plaintiff in the action,
also sought an award of attorney fees and costs. Independence Lead
Mines Company, Inc. denied any liability of Independence Lead Mines
Company under those notes.
A second action was also filed by H.F.Magnuson & Company and former
directors, R.M.MacPhee, Dale B.Lavigne and Wray Featherstone in
Shoshone County, Idaho case #CV98-34225 against Independence Lead
Mines Company and its existing directors, Bernard C. Lannen, Gordon
Berkhaug, Forrest Godde and Robert Bunde to validate 60,000 shares of
Independence Lead Mines Company stock issued to them prior to May 22,
1997. The Plaintiffs also sought monetary damages from the Defendants
in excess of $10,000 plus attorney fees and costs. All Defendants
denied the validity of those 60,000 shares and denied any liability
for monetary damages.
Independence Lead Mines Company and the other Defendants filed
counterclaims against Plaintiffs in both suits. Both of the above
cases were consolidated in a single proceeding in Shoshone County,
Idaho in May, 1999.
During the latter part of 1999, the Plaintiffs and the Defendants in
the consolidated case attended mediation conferences in an effort to
reach a settlement of the claims and issues existing between the
parties. A settlement agreement and mutual release was entered into
between the parties and that agreement was fully executed by all
parties in January, 2000. By stipulation of the parties, the above
cases were dismissed on January 25, 2000 with prejudice and without
costs or attorney fees. The settlement resulted in a cash payment to
Independence Lead Mines Company and cancellation of the two promissory
notes in the principal amount of $86,100 plus all accrued interest.
The 60,000 shares of stock that were claimed by Independence Lead
Mines Company to have been over-issued were returned to Independence
Lead Mines Company and the Company is in the process of canceling
those certificates to correct the over-issuance (See note 5 to the
financial statements). All parties denied each others' claim and
allegations throughout the litigation.
The conclusion of the above proceedings ends all pending legal
proceedings involving Independence Lead Mines Company, Inc.
ITEM 4. SUBMISSION OF MATTER TO A VOTE OF SECURITY HOLDERS
There was no shareholder meeting held in 1999.
Part II
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS.
(a) The market price ranges of the Company's common stock during each
quarter of the years 1999 and 1998, respectively, were as follows:
1999 1998
------------- -------------
High Low High Low
---- ---- ---- ----
1st Quarter 0.95 0.55 1.80 1.50
2nd Quarter 0.58 0.48 1.80 1.55
3rd Quarter 0.50 0.45 1.80 1.10
4th Quarter 0.50 0.45 1.35 0.90
(b) APPROXIMATE NUMBER OF EQUITY SECURITY HOLDERS.
Title of Class (1) Number of Record Holders December 31, 1998
------------------- ------------------------------------------
Common non-assessable Approximately 2,300 (1)
Capital stock, par value
$1.00 per share
---------------------------------------
(1) Included in the number of shareholders of record are shares held in
"nominee" or "street" name.
3
(c) No dividends were paid by the Registrant in 1998 or 1997, and the
Company has no plans to pay a dividend in the foreseeable future.
ITEM 6. SELECTED FINANCIAL DATA
Selected Income Statements Data:
Year ended December 31,
------------- ----------------
1999 1998 1997 1996
---- ---- ---- ----
Net Revenues 84,688 3,592 - 0 - - 0 -
Net Income (Loss)(121,391) (29,023) (34,788) (51,353)
Net Income (Loss)
Per share (0.028) (0.007) (0.009) (0.006)
Selected Balance Sheets Data:
Year ended December 31,
1999 1998 1997 1996
---- ---- ---- ----
Current Assets 9,706 60,086 8,883 396
Current Liabilities 177,192 105,065 105,185 79,160
Working Capital (167,486) (44,979) (96,302) (78,764)
Total Assets 3,246,033 3,296,413 3,244,105 3,235,618
Deferred Income 319,250 301,250 283,250 266,000
Long-Term Debt - 0 - - 0 - - 0 - - 0 -
Stockholders'
Equity 2,749,591 2,890,098 2,855,670 2,890,458
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULT OF OPERATIONS.
LIQUIDITY. The liquidity of the Company decreased over the past year,
primarily due to legal expenses incurred during the year, discussed in
Item 3. Legal Proceedings. It is anticipated that working capital will
be provided in the future by advanced royalties and proceeds from the
sale of timber on Company land.
CAPITAL RESOURCES. The Property of the Company is leased to Hecla
Mining Company. Capital improvements are to be paid for by Hecla
pursuant to the terms of the leases. The Company has no long-term
debt.
RESULTS OF OPERATIONS. The Company is in the exploratory and
development stage and has no operations. The general and
administrative costs in 1999 increased substantially over 1998 due to
legal expenses associated with the litigation discussed in Item 3
above. Revenue of $84,688 was realized in 1999 from the sale of timber
and interest income.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
The Company's financial statements appear following Item 9. See index
to Financial Statements at Page 5 of this report.
ITEM 9. DISAGREEMENTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.
Not applicable.
4
INDEX TO FINANCIAL STATEMENTS
Filed as part of the Annual Report Form 10-K
December 31, 1999
PAGE
FINANCIAL STATEMENTS:
Balance Sheet, December 31, 1999 and 19978 . . . 6
Statement of Operations and Deficit Accumulated
During The Exploratory Stage for the Years Ended
December 31, 1999, 1998 and 1997 . . . . . 7
Statement of Cash flows, for the years ended
December 31, 1999, 1998 and 1997 . . . . . 8
Notes to Financial Statements, December 31, 1999
and 1998 . . . . . . . . . . 9
The Company's financial statements are unaudited in reliance upon
Section 210.3-11 of Regulations S-X adopted by the Securities and
Exchange Commission.
[The balance of this page has been intentionally left blank.]
5
INDEPENDENT LEAD MINES COMPANY
(An Exploration Stage Company)
BALANCE SHEET - UNAUDITED
December 31, 1999 and 1998
-------------------------
A S S E T S
CURRENT ASSETS 1999 1998
------ -----
Cash 5,298 55,678
Royalties Receivable 1,500 1,500
Investments 2,908 2,908
-------- -------
Total current assets 9,706 60,086
-------- -------
PROPERTY AND EQUIPMENT, at cost
Equipment - -
Less accumulated depreciation - -
-------- --------
Mining property 3,048,407 3,048,407
-------- --------
3,048,407 3,048,407
OTHER ASSETS -------- --------
Unrecovered exploration costs 187,920 187,920
--------- --------
Total Assets 3,246,033 3,296,413
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES 1999 1998
----- -----
Accounts payable 28,711 6,333
Advances payable 86,100 86,100
Interest payable 20,381 12,632
Loans from Shareholders 42,000 -
------- -------
Total current liabilities 177,192 105,065
------- -------
DEFERRED INCOME 319,250 301,250
------- -------
STOCKHOLDERS' EQUITY
Common stock, $1.00 par value; authorized
5,000,000 shares; issued 4,371,993 shares
at 12/31/99 and 4,369,993 shares at 12/31/98;
outstanding 4,333,357 at 12/31/99 and
4,369,993 shares at 12/31/98 4,371,993 4,369,993
Treasury Stock (19,116) -
Additional Paid in Capital (121,873) (119,873)
(deficit) -------- --------
4,231,004 4,250,120
Less deficit accumulated during the
Exploratory stage (1,481,413) (1,360,022
)
---------- ---------
Total Stockholder's equity 2,749,591 2,890,098
---------- ---------
Total Liabilities & Stockholders' equity 3,246,033 3,296,413
========== =========
The accompanying notes are an integral part of
these financial Statements.
6
INDEPENDENT LEAD MINES COMPANY
(An Exploration Stage Company)
STATEMENT OF OPERATIONS AND DEFICIT ACCUMULATED DURING THE
EXPLORATORY STAGE - UNAUDITED
For the years ended December 31, 1999, 1998, 1997
------------------------------------------------
REVENUE 1999 1998 1997
------ ----- -----
Sales - Timber 83,500 2,091 -
Interest Income 1,188 1,501 -
------- ------ -----
84,688 3,592 -
------- ------ ------
EXPENSES
Management and Directors fees $ 11,500 $ $
- -
Licenses and fees 324 1,372 290
Office expense 250 2,661 2,939
Office services 500 497 4,900
Geological - - 2,050
Interest 7,749 7,810 7,004
Legal 182,826 14,233 9,671
Accounting 1,590 1,450 877
Shareholder & Public Relations 1,340 4,592 7,057
-------- ------- ------
206,079 32,615 34,788
-------- ------- -------
NET LOSS 121,391 29,023 34,788
DEFICIT, accumulated during the
exploratory stage, beginning
of year 1,360,022 1,330,999 1,296,210
---------- --------- ---------
DEFICIT, accumulated during the
Exploratory stage, end of year 1,481,413 1,360,022 1,330,998
========== ========= =========
LOSS PER SHARE .028 .007 .009
========== ======== ========
The accompanying notes are an integral part of these financial statements.
[The balance of this page has been intentionally left blank.]
7
INDEPENDENT LEAD MINES COMPANY
(An Exploration Stage Company)
STATEMENT OF CASH FLOWS - UNAUDITED
For the years ended December 31, 1999, 1998, 1997
------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES 1999 1998 1997
----- ----- -----
Net loss (121,391) (29,023) (34,788)
Adjustment to reconcile net
Loss to net cash provided by
Operating activities
Increase (decrease) in cash
Due to changes in assets
and liabilities
Receivable - (1,500) -
Accounts payable 22,378 2,428 (9,119)
Deferred income 18,000 18,000 17,250
Interest payable 7,749 7,452 (1,356)
------- ------- -------
Net cash used by
Operating activities (73,264) (2,643) (28,013)
-------- -------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of capital stock - 75,000 -
Net borrowing on short-term advances 42,000 (10,000) 36,500
------- -------- -------
42,000 65,000 36,500
------- -------- -------
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Mining Claims - (1,105) -
Purchase of Company's Capital Stock (19,116) (11,549) -
Purchase of Investments - (2,908) -
-------- -------- ------
(19,116) (15,562) -
-------- -------- ------
Net increase (decrease) in cash (50,380) 46,795 8,487
CASH, beginning of year 55,678 8,883 396
------- ------ ------
CASH, end of year 5,298 55,678 8,883
====== ======= ======
DISCLOSURE OF ACCOUNTING POLICY
For the years ended December 31, 1999, 1998 and 1997, the Company had
no cash equivalents.
SUPPLEMENTARY DISCLOSURE OF CASH FLOW INFORMATION
1999 1998 1997
Interest paid 0 0 8,324
====== ===== =====
Taxes paid - State of Idaho 30 30 30
====== ===== =====
The accompanying notes are an integral part of these financial statements.
8
INDEPENDENT LEAD MINES COMPANY
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
December 31, 1999 and 1998
------------------
Note 1 - Company business - The Company was incorporated under the laws of
the State of Arizona on September 16, 1929. The Company is
presently in the exploratory stage.
Note 2 - The significant accounting principles and practices of the
Company are as follows:
a. The financial statements are prepared on the accrual basis of
accounting.
b. In accordance with Statement No. 7 of the Financial Accounting
Standards Boards, the Company charges current costs related to
exploration and development to operations.
c. The Company depreciated its equipment on the straight-line method over
their estimated useful life of 7 years. The Company currently has no
depreciable property.
d. Earning per share have been computed using the weighted average of
shares outstanding during the period.
Note 3 - Company property - The Company has 15 patented and 17 unpatented
claims situated in the Hunter Mining District, Shoshone County,
Idaho. On February 8, 1968, the Company entered into an
agreement with Day Mines, Inc., Abot Mining Company and Hecla
Mining Company. Certain properties of the four companies were
combined for purposes of exploration and development. These
properties were referred to as the DIA Area. The DIA Area
consists of 9 patented and 14 unpatented claims of Independence
Lead Mines Company. Hecla Mining Company is the exploring and
developing company. The DIA agreement allows Hecla Mining
Company to recover all of its exploration and development cost,
advance royalties paid, and to build a three months' reserve for
working capital prior to splitting profits. Independence is to
receive 18.52% of the profits, and under the terms of the DIA
agreement the Company receives an advance of $1,500 for each
month 2,000 tons of ore is mined.
Note 4 - In addition to cash costs in the amount of $23,302, the amount
reflected in the balance sheet as the cost of mining claims
reflects the par value assigned to 3,024,000 shares of stock
issued for $3,034,000. The underlying cost basis of the mining
claims is unknown and unobtainable. Since it was an accepted
accounting practice at the time of the transaction, all
subsequent financial statements have used the par value of the
shares issued as the cost basis of the mining claims. The
Company has considered revaluation of the mining properties, but
feels that to revalue them at an amount that has no basis would
be misleading. The Company feels that the claims are of value,
as Hecla Mining Company has continued with its lease since 1968.
Note 5 - The apparent over-issuance of stock in the total amount of 60,000
shares as was reported in Independence Lead Mines Company's prior
form 10-Ks, has been remedied. The 60,000 shares believed by
Independence Lead Mines Company to be over-issued have been
returned to the Company and the Company is in the process of
canceling those shares and correcting the over-issuance.
Note 6 - As shown in the financial statements, the Company incurred net
losses of $121,391, $29,023, and $34,788, during the years ending
December 31, 1999, 1998, and 1997, respectively, and on these
dates, the Company's current liabilities exceeded current assets
by $167,486, $44,979, and $96,302. These factors indicate doubt
as to the ability of the
9
INDEPENDENT LEAD MINES COMPANY
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
December 31, 1999 and 1998 - continued
-----------------
Note 6 - continued
Company to continue business on a going concern basis.
Current liabilities at December 31, 1999 include advances payable
to H.F. Magnuson & Co. of $86,100 plus accrued interest of
$20,381. A settlement agreement between the Company and H.F.
Magnuson & Company in January 2000 resulted in cancellation of
the advances payable and all accrued interest. The financial
statements do not include any adjustments relating to the
recoverability of recorded asset amounts or the amounts and
classification of liabilities that might be necessary should the
company be unable to continue in existence.
Note 7 - Statements of income, cash flows, and shareholders' equity since
the inception of the Company, September 16, 1929, through
December 31, 1999 have not been presented. Generally accepted
Accounting principles require that such statements be presented
when financial statements purport to present financial position
and results of operations for a development stage company.
Early records of income and expense for the Company are
incomplete.
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT.
Name of Executive
Officers and Directors Brief profile of
And Position Held Age Officers and Directors
- ------------------ --- ----------------------
Bernard C. Lannen 63 Semi Retired
President and Director Director of Lucky
Friday Extension Mining
Company
Wayne L. Schoonmaker 63 Certified Public Accountant
Secretary/Treasurer Secretary/Treasurer of
Hanover Gold Company Inc.
Treasurer of Metalline Mining
Company.
Forrest G. Godde 83 President of Corporate
Ranches in
Director California and Nevada,
Director of Mineral Mountain
Mining
Robert Bunde 61 Semi retired farmer with
investments in
Director The mining field.
Gordon Berkhaug 65 Management of real estate
investments
Director With experience in the mining
field
The by-laws of the Company provide that the Directors serve until the
next annual meeting of shareholders or until their respective successors
have been duly elected and qualified. Officers serve at the discretion of
the Board of Directors.
10
INDEPENDENT LEAD MINES COMPANY
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
December 31, 1999 and 1998 - continued
-----------------
ITEM 11. EXECUTIVE COMPENSATION
(a) The following table sets forth all remuneration paid by the Company
during the fiscal year ended December 31, 1998, for services in all
capacities to all directors and executive officers of the Company.
Name of Individual Capacities in
Or Number in Group Which served Compensation
- ----------------- -------------- -------------
Five persons in the All executive -0-
group officers and
Directors as a group
No retirement benefit, bonus or other remuneration plans are in effect
with respect to the Company's officers and directors.
The Company has no standard or other arrangements for compensating
directors.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
To the knowledge of the Company, no person beneficially owned more
than five percent (5%) of any class of the Registrant's voting
securities as of January 31, 2000.
The following tabulation shows the beneficial ownership's of the
Company's officers and directors in the securities of the Company as
of January 31, 2000:
Shares of Approximate
Common Stock Percentage of
Name Beneficially Owned Class
- ------------ ------- ------
Bernard C. Lannen 171,082 3.95
Wayne L. Schoonmaker 4,000 .09
Forrest G. Godde (1) 95,000 2.19
Robert Bunde 159,500 3.68
Gordon Berkhaug 68,275 1.58
All directors and executive officers of the Company as a group (5
persons in a group) own 497,857 shares or approximately 11.49 percent
of the Company are outstanding voting securities.
(1) Includes 45, 000 shares that represent Mr. Godde's 50% interest in the
Godde 1980 Trust.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTION
During 1999 the Company borrowed on a short term basis the amount of
$42,000 from a director of the Company. That amount was outstanding at
December 31, 1999, and was repaid in January 2000 plus interest at 8% per
annum.
11
INDEPENDENT LEAD MINES COMPANY
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
December 31, 1999 and 1998
----------------------
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K
(a) 1. Financial Statements - See index to Financial Statements at page 5
of this report
2. Financial Statement Schedules
V - Statement of Property, Plant and Equipment, Page 14.
Other financial statement schedules are omitted because of
conditions under which they are required, or because the required
information given in the financial statements or notes thereto.
(b) The company filed its report on Form 8-K during the last quarter of
1992.
(c) Exhibits - No additional exhibits are filed as a part of this
report. The Exhibit Index appears at Page 13 of this report.
[The balance of this page has been intentionally left blank.]
12
INDEPENDENT LEAD MINES COMPANY
Form 10-K Annual Report
For the year ended December 31, 1999
EXHIBIT INDEX
Exhibits
3.1 Articles of Incorporation of Independence Lead Mines, Inc., as
amended, previously filed as Exhibit 3.1 to form 10-K for 1983 and
incorporated by reference herein.
3.2 Bylaws of Independence Lead Mines Company, as amended, previously
filed as Exhibit 3.2 to form 10-K for 1983 and incorporated by reference
herein.
10.1 Unitization Agreement dated February 8, 1968 among Day Mines, Inc.,
Independence Lead Mines company and Abot Mining Company, previously filed
as Exhibit 10.1 to Form 10-K for 1983 and incorporated by reference herein.
10.2 Agreement dated February 8, 1968 among Hecla Mining Company, Day
Mines, Inc., Independence Lead Mines Company and Abot Mining Company,
previously filed Exhibit 10.2 to Form 10-K for 1983 and incorporated by
reference herein.
10.3 Agreement dated February 8, 1968 among Independence Lead Mines
Company, Day Mines, Inc., Abot Mining Company, Wall Street Mining
Company, Hunter Creek Mining Company, Lucky Friday Extension
Mining Company, Hecla Mining Company and the Bunker Hill Mining
Company relating to extralateral and intralimital rights to
mining claims, previously filed as Exhibit 10.7 to Form 10-K for
1983 and incorporated by reference herein.
[The balance of this page has been intentionally left blank.]
13
INDEPENDENCE LEAD MINES COMPANY
(AN EXPLORATION STAGE COMPANY)
PROPERTY, PLANT AND EQUIPMENT
For the years ended December 31, 1999, 1998 and 1997
----------------------------------------
Balance, Balance
Beginning Other End of
Of year Addition Retire- Changes Year
ments
--------- --------- -------- ------- ------
December 31,1999
Equipment 0 - - -0-
-------- ------- ----- --------
Mining Property 3,048,407 - - 3,048,407
Less deferred credits 301,250 18,000 - 301,250
-------- ------- ----- --------
Net 2,747,157 (18,000) - 2,729,157
-------- ------- ----- ------ --------
Total 2,747,157 (18,000) - NONE 2,729,157
========== ========== ======= ======= =========
December 31,1998
Equipment 0 - - -0-
--------- -------- ----- ---------
Mining Property 3,047,302 1,105 - 3,048,407
Less deferred credits 283,250 18,000 - 301,250
--------- -------- ----- ---------
Net 2,764,052 (16,895) - 2,747,157
--------- -------- ----- ------ ---------
Total 2,764,052 (16,895) - NONE 2,747,157
========= ======== ===== ====== =========
December 31,1997
Equipment 118 - (118) -
--------- -------- ----- ---------
Mining Property 3,047,302 - - 3,047,302
Less deferred credits 266,000 17,250 - 283,250
--------- -------- ----- ---------
Net 2,781,302 (17,250) (118) 2,764,052
--------- -------- ----- ------ ---------
Total 2,781,420 (17,250) (118) NONE 2,764,052
========= ======== ===== ====== =========
14
SIGNATURES
Pursuant to the requirement of Section 13 of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be sign on its behalf by the
undersigned, thereunto duly authorized.
INDEPENDENCE LEAD MINES COMPANY
By: /s/ Bernard C. Lannen
---------------------
Bernard C. Lannen, its President and
Chief Administrative Officer
Dated: March 27, 2000
By: /s/ Wayne L. Schoonmaker
------------------------
Wayne L. Schoonmaker, its Principal
Accounting Officer
Dated: March 27, 2000
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 as of the date indicated.
By: /s/ Bernard C. Lannen By: /s/ Wayne L. Schoonmaker
--------------------- ------------------------
Bernard C. Lannen Wayne L. Schoonmaker
Director Secretary and Treasurer
Dated: March 27, 2000 Dated: March 27, 2000
By: /s/ Forrest G. Godde By: /s/ Gordon Berkhaug
-------------------- -------------------
Forrest G. Godde Gordon Berkhaug
Director Director
Dated: March 27, 2000 Dated: March 27, 2000
By: /s/ Robert Bunde
-----------------
Robert Bunde
Director
Dated: March 27, 2000
15