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 wastewater 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.
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PRINCETON MINING COMPANY FORM 10-K ANNUAL REPORT FOR THE YEAR ENDED DECEMBER 31, 1998
Item 3
Item 3 - LEGAL PROCEEDINGS
On November 29, 1984, the Company declared an agreement executed in 1962 between James C. Young, 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 12 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 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
On May 8, 1997 at a special shareholders meeting, the shareholders approved increase in the capitalization of the Company to 30,000,000 non-assessable, ten cent par value shares consisting of 29,000,000 shares of common stock and 1,000,000 shares of preferred stock.
PART II
Item 5
Item 5 - MARKET FOR 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 1998 and 1997 were as follows:
(b) Approximate Number of Equity Security Holders. ---------------------------------------------------
Title Class (1) Number of Record Holders December 31, 1998 - ------------ ------------------------------------------- Common assessable capital Approximately 1,350 (1) stock, par value 10 cents per share
(1) Included in the number of shareholders of record are shares held in "nominee" or "street" name. (c) No dividends were paid by the Company in 1998 or 1997.
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PRINCETON MINING COMPANY FORM 10-K ANNUAL REPORT FOR THE YEAR ENDED DECEMBER 31, 1998
Item 6
Item 6 - SELECTED FINANCIAL DATA
The following data should be read in conjunction with the Company's financial statements and the notes thereto:
Selected Balance Sheet Data:
Item 7
Item 7 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The only activity at the Company's mining properties during 1998, 1997 and 1996 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, with the exception of the 1997 loss on abandoned mining claims of $275,688.
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.
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PRINCETON MINING COMPANY FORM 10-K ANNUAL REPORT FOR THE YEAR ENDED DECEMBER 31, 1998
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
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Page ----
Statement of Financial Position as of December 31, 1998 and 1997 7
Statement of Operations for the Years Ended December 31, 1998, 1997 and 1996 8
Statement of Changes in Stockholders' Equity for the Years Ended December 31, 1998, 1997 and 1996 9
Statement of Cash Flows for the Years Ended December 31, 1998, 1997 and 1996 10
Notes to Financial Statements 11
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.
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PRINCETON MINING COMPANY BALANCE SHEET December 31, 1998 and 1997 (Unaudited)
Prepared by Management The accompanying notes are an integral part of these financial statements.
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PRINCETON MINING COMPANY STATEMENT OF OPERATIONS For the years ended December 31, 1997, 1996, and 1995 (Unaudited)
Prepared by Management The accompanying notes are an integral part of these financial statements.
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PRINCETON MINING COMPANY Statement of Changes in Stockholders' Equity for the Years Ended December 31, 1998, 1997, and 1996 (Unaudited)
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.
Item 11 - EXECUTIVE COMPENSATION
None
Item 12 - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
H.F. Magnuson, Vice President of the Company owns 6,423,940 shares.
Item 13 - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
None
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PRINCETON MINING COMPANY FORM 10-K ANNUAL REPORT FOR THE YEAR ENDED DECEMBER 31, 1998
PART IV
Item 14 - EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K
(a) Financial Statements - See index to Financial Statements at page 6 of this report.
(b) Exhibits
No additional exhibits are filed as a part of this report. The Exhibit Index appears at page 14 of this report.
SIGNATURES
Pursuant to the requirements of Section 13 of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Princeton Mining Company ------------------------ (Registrant)
/s/ H. James Magnuson /s/ Dennis O'Brien President and Director Secretary-Treasurer and Director
Date: Date:
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following person on behalf of the registrant and in the capacities and as of the date indicated.
/s/ H. James Magnuson /s/ Dennis O'Brien President and Director Secretary-Treasurer and Director
Date: Date:
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Princeton Mining Company Form 10-K Annual Report For the year ended December 31, 1998
EXHIBIT INDEX -------------
Exhibits
3.1 Articles of Incorporation of Princeton Mining Company, as amended, incorporated herein by reference to the Registrant's Form 10-K for the year ended December 31, 1983.
3.2 Bylaws of Princeton Mining Company, as amended, incorporated herein by referenced to Registrant's Form 10-K for the year ended December 31, 1983.
10.1 Young and Kay Critchlow, incorporated herein by referenced to Registrant's Form 10-K for the year ended December 31, 1983.
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Item 11 - EXECUTIVE COMPENSATION
None
Item 12
Item 12 - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
H.F. Magnuson, Vice President of the Company owns 6,423,940 shares.
Item 13
Item 13 - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
None
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PRINCETON MINING COMPANY FORM 10-K ANNUAL REPORT FOR THE YEAR ENDED DECEMBER 31, 1998
PART IV
Item 14
Item 14 - EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K
(a) Financial Statements - See index to Financial Statements at page 6 of this report.
(b) Exhibits
No additional exhibits are filed as a part of this report. The Exhibit Index appears at page 14 of this report.
SIGNATURES
Pursuant to the requirements of Section 13 of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Princeton Mining Company ------------------------ (Registrant)
/s/ H. James Magnuson /s/ Dennis O'Brien President and Director Secretary-Treasurer and Director
Date: Date:
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following person on behalf of the registrant and in the capacities and as of the date indicated.
/s/ H. James Magnuson /s/ Dennis O'Brien President and Director Secretary-Treasurer and Director
Date: Date:
Page 13 of 14
Princeton Mining Company Form 10-K Annual Report For the year ended December 31, 1998
EXHIBIT INDEX -------------
Exhibits
3.1 Articles of Incorporation of Princeton Mining Company, as amended, incorporated herein by reference to the Registrant's Form 10-K for the year ended December 31, 1983.
3.2 Bylaws of Princeton Mining Company, as amended, incorporated herein by referenced to Registrant's Form 10-K for the year ended December 31, 1983.
10.1 Young and Kay Critchlow, incorporated herein by referenced to Registrant's Form 10-K for the year ended December 31, 1983.
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