Item 1. Business.
Princeton Mining Company (the "Company") was incorporated under the laws of Idaho in September 1950. The Company is the owner of an interest in thirty- eight unpatented mining claims situated east of the village of Mullan in the Coeur d'Alene Mining District, Shoshone County, Idaho. By agreement dated June 1, 1962 between the Company, James C. Young and Kay Critchlow, the Company agreed to convey an undivided sixty percent interest in its unpatented mining claims (the "Property") to Young and Critchlow in return for the expenditure by them of $65,000 on exploration and development of the Property or the discovery by them of commercial ore on the Property. This agreement, including the right to acquire an undivided sixty percent interest, was subsequently assigned by Young and Critchlow to Magna Mining Company ("Magna"). Under the terms of the agreement, Magna Mining Company, as the assignee of Young and Critchlow, has the obligation to perform annual assessment work on the claims comprising the Property at Magna's expense. Additionally, Magna has the right to possession of the Property for purposes of performing exploration or development work and extracting any ore found as a result thereof. During 1991, Magna terminated the agreement.
To the knowledge of the Company, no commercial ore deposit has been found as the result of any exploration work done to date on the Company's Property. Consequently, there has been no production of ore from the Property and the Company makes no claim to the existence of ore reserves in the Property.
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 on 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 regulations 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 operation.
The Company has no employees.
Item 2.
Item 2. Properties
The information regarding the Properties of the Company is set forth under "Item 1. Business" of this report, and is incorporated by reference in answer to this Item.
PRINCETON MINING COMPANY Form 10-K Annual Report For the year ended December 31, 1996
Item 3.
Item 3. Legal Proceedings
On November 29, 1984, the Company declared an agreement executed in 1962 between James C. Young and Kay Critchlow and the Company and assigned by Young and Critchlow to Magna Mining Company, had been forfeited and terminated. On February 6, 1985, Magna Mining Company commenced an action against the Company seeking a judgement declaring the agreement in full force and effect. Reference is made to Note 2 of the Notes to Financial Statements, page 10 of this report, for additional information concerning this proceeding.
During 1989, the court ruled that Magna was not entitled to a deed to the property and that Princeton was not entitled to a forfeit of the lease. The relationship of the parties continued under the lease.
During 1991, Magna gave the Company notice of termination of the agreement.
Item 4.
Item 4. Submissions of Matters to a Vote of Security Holders
No matters were submitted to the vote of security holders during the year of 1996.
Part II
Item 5.
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 1996 and 1995 were as follows:
(b) Approximate Number of Equity Security Holders.
(c) No dividends were paid by the Company in 1996 or 1995.
PRINCETON MINING COMPANY Form 10-K Annual Report For the year ended December 31, 1996
Item 6.
Item 6. Selected Financial Data Selected Income Statements Data:
Year ended December 31, __________________________________________________________ 1992 1993 1994 1995 1996 __________ __________ __________ __________ __________ [C] [S] [S] [S] [S] [S]
Net revenues -0- -0- -0- -0- -0- Net income (loss) (27,030) (29,269) (27,622) (34,578) Per share (.90 cents) (.98 cents) (.92 cents) (1.15 cents) Cash Dividends per share -0- -0- -0- -0- -0-
Selected Balance Sheets Data:
Year ended December 31, __________________________________________________________ 1992 1993 1994 1995 1996 __________ __________ __________ __________ __________ [C] [S] [S] [S] [S] [S] Current assets $ 41 $ 98 $ 74 $ 57 $ 108 Current liabilities 175,394 204,720 232,318 261,757 296,386 __________ __________ __________ __________ __________
Working capital (175,353) (204,622) (232,244) (261,700) (296,278) Total Assets 300,729 300,786 300,762 300,745 300,796 Long-term debt -0- -0- -0- -0- -0- Stockholders' equity 125,335 96,066 68,444 38,988 4,410
Item 7.
Item 7. Management's Discussion and Analysis of Financial Condition and Result of Operations.
The only activity at the Company's mining properties during 1996, 1995 and 1994 was performance of the assessment work on the Company's unpatented mining claims. Expenses and income have remained relatively stable during all three years in all categories.
The liquidity of the firm has decreased for the past three years, with expenses exceeding income.
No major capital improvements are planned for the property in the foreseeable future.
The Company has no long-term debt.
Item 8.
Item 8. Financial Statements and Supplementary Data.
The Company's financial statements appear following Part II of the report. See index to financial statements at page 6 of this report.
Item 9.
Item 9. Disagreements on Accounting and Financial Disclosure.
Not applicable.
PRINCETON MINING COMPANY
Files as part of the Annual Report Form 10-K December 31, 1996
Page FINANCIAL STATEMENTS:
Balance Sheet, December 31, 1996 and 1995 . . . . . . . . . . . . . 9
Income statement for the years ended December 31, 1996, 1995, and 1994 . . . . . . . . . . . . . . . 10
Statement of accumulated deficit for the years ended December 31, 1996, 1995, and 1994 . . . . . . . . . . . . . 10
State of cash flows for the year ended December 31, 1996, 1995, and 1994 . . . . . . . . . . . . . . . . . . . . . . 11
Notes to financial statements, December 31, 1996 and 1995 . . . . . 12
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.
(Unaudited) PRINCETON MINING COMPANY (A Development Stage Enterprise) BALANCE SHEET December 31, 1996 and 1995
(Unaudited) PRINCETON MINING COMPANY (A Development Stage Enterprise) INCOME STATEMENT For the years ended December 31, 1996, 1995, and 1994
STATEMENT OF ACCUMULATED DEFICIT For the years ended December 31, 1996, 1995, and 1994
(Unaudited) PRINCETON MINING COMPANY (A Development Stage Enterprise) STATEMENT OF CASH FLOWS For the year ended December 31, 1996, 1995, and 1994
(Unaudited) PRINCETON MINING COMPANY (A Development Stage Enterprise)
NOTES TO FINANCIAL STATEMENTS December 31, 1996 and 1995
NOTE 1: Summary of Significant Accounting Policies:
Prior to the year 1976, all expenses incurred were capitalized to the development account, a policy generally followed by mining companies in the development stage.
Effective with the year 1976, pursuant to a pronouncement of the Financial Accounting Standards Board, registrant restated the records to reflect the development expenses incurred in prior periods as charges to "Deficit accumulated during the exploration and development stage."
NOTE 2: The mining property of the Company has been developed under the terms of an agreement executed in 1962 with James C. Young and Kay Critchlow. All or portions of the interests of Young and Critchlow under that agreement had been assigned to the Magna Mining Company.
On November 29, 1984, Princeton declared that the agreement had been forfeited and terminated. Magna Mining Company resisted forfeiture and termination of the agreement, and on February 6, 1985, Magna commenced an action in the First Judicial District of the State of Idaho, in and for the County of Shoshone, against Princeton seeking a judgement declaring that the 1962 agreement is in full force and effect. The major issue in the litigation was the interpretation of the 1962 agreement and the extent of Magna's performance of obligations under the agreement. In the event that Magna was successful in the litigation, mining development would continue under the terms of the agreement by Magna and Princeton would retain a 40% interest in the property. In the event that
Princeton was successful in the litigation, Princeton would own all rights in the property free and clear of any rights claimed by Critchlow, Young, or Magna.
During 1989, the Court ruled that Magna was not entitled to a deed to the property and that Princeton was not entitled to a forfeit of the lease. The relationship of the parties continued under the lease.
During 1991, Magna gave notice to the Company of their termination of the agreement and intention not to do the assessment work for 1991. Therefore, the Company has performed all the required assessments and filings for the current year.
PRINCETON MINING COMPANY Form 10-K Annual Report For the year ended December 31, 1996
Part III
Item 10.
Item 10. Directors and Executive Officers of the Registrant. (a), (b), and (e)
The bylaws of the Company provided that the Directors serve until the next annual meeting of shareholders or until their respective successors have been duly elected and qualified. The bylaws also provide that the officers serve at the discretion of the Board of Directors.
(c) Not applicable
(d) Not applicable
(f), (g) Not applicable
Item 11.
Item 11. Executive Compensation
(a) The following table sets forth all cash compensation paid by the Company during the fiscal year ended December 31, 1995 for services in all capacities to all directors and executive officers of the Company.
PRINCETON MINING COMPANY Form 10-K Annual Report For the year ended December 31, 1996
(b) No retirement, benefit, bonus or other remuneration plans are in effect with respect to the Company's officers or directors.
(c) The Company has no standard or other arrangements for compensating directors.
(d), (e) Not applicable
Item 12.
Item 12. Security Ownership of Certain Beneficial Owners and Management.
(a) 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 17, 1997.
(b) The following tabulation shows the beneficial ownerships of the Company's officers and directors in the securities of the Company as of January 17, 1996: