SEC Info - Silver Mountain Lead Mines Inc - ‘10-K405’ for 12/31/96

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Silver Mountain Lead Mines Inc – ‘10-K405’ for 12/31/96

As of: Wednesday, 3/26/97 · For: 12/31/96 · Accession #: 90366-97-2 · File #: 1-03728

  As Of                Filer                Filing    For·On·As Docs:Size

 3/26/97  Silver Mountain Lead Mines Inc    10-K405    12/31/96    2:30K

Annual Report — [x] Reg. S-K Item 405 — Form 10-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-K405     Silver Mountain Lead Mines Form 10-K                  18     66K 
 2: EX-27       Financial Data Schedule                                1      5K

10-K405 — Silver Mountain Lead Mines Form 10-K
Document Table of Contents

Page	(sequential)	\|	(alphabetic)	Top
			Alternative Formats (Word, et al.) Business Certain Relationships and Related Transactions Directors and Executive Officers of the Registrant Disagreements on Accounting and Financial Disclosure Executive Compensation Exhibits, Financial Statement Schedules and Reports on Financial Statements and Supplementary Data Legal Proceedings Management's Discussion and Analysis of Financial Market for the Registrant's Common Stock and Related Property Security Ownership of Certain Beneficial Owners & Selected Financial Data Submission of Matters to a Vote of Security Holders
1	1st Page - Filing Submission
2	Item 1. Business
4	Item 2. Property
"	Item 3. Legal Proceedings
"	Item 4. Submission of Matters to a Vote of Security Holders
5	Item 5. Market for the Registrant's Common Stock and Related
6	Item 6. Selected Financial Data
7	Item 7. Management's Discussion and Analysis of Financial
"	Item 8. Financial Statements and Supplementary Data
13	Item 9. Disagreements on Accounting and Financial Disclosure
14	Item 10. Directors and Executive Officers of the Registrant
"	Item 11. Executive Compensation
15	Item 13. Certain Relationships and Related Transactions
16	Item 12. Security Ownership of Certain Beneficial Owners &
17	Item l4. Exhibits, Financial Statement Schedules and Reports on

10-K405 1st Page of 18 TOC ↑Top Previous Next ↓Bottom Just 1st
 
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, 1996                                     

OR

[ ]         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE            
 SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________________ to _______________________ 

Commission File No.      132-3                                                  
                   -----------------------------------------------------------

  SILVER MOUNTAIN LEAD MINES, INC.
------------------------------------------------------------------------------- 
(Exact name of Registrant as specified in its charter)

    Idaho                                             82-6008744
-------------------------------                     --------------------------- 
(State or other jurisdiction of                        (I.R.S. Employer         
incorporation or organization)                        Identification No.)       

6500 Mineral Drive                                                    
Coeur d'Alene, Idaho                                     83814-8788   
-------------------------------------------            ------------------------ 
(Address of principal executive offices)                      (Zip Code)        

(Registrant's telephone number, including area code)         208-769-4100       
                                                      ------------------------

Securities registered pursuant to Section 12(g) of the Act:                     

 Title of each class
------------------------------------------
Common stock, par value 10 cents per share

      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, and (2)  has been subject  to such filing
requirements for at least the past 90 days.  Yes    XX     No                   
                                      -------      -------

      Indicate  by check  mark if  disclosure of  delinquent filers  pursuant to
Item 405 of Regulation S-K  is not contained herein, and will not  be contained,
to  the best  of  registrant's  knowledge, in  definitive proxy  or  information
statements  incorporated by  reference in  Part  III of  this  Form 10-K  or any
amendment to this Form 10-K.  [ X ]                                             

      The aggregate market value of the registrant's voting common stock held by
non-affiliates was  $153,300 as of  May 24, 1991, the date  Silver Mountain Lead
Mines ceased being quoted on the Spokane  Stock Exchange (due to the  Exchange's
discontinuance of operations).   As of February  28, 1997, there  were 3,066,000
shares of the registrant's common stock outstanding.                            

10-K405 2nd Page of 18 TOC 1st Previous Next ↓Bottom Just 2nd
PART I            
------            

Item 1.   Business                                                              
--------                                                    

Silver Mountain Lead Mines, Inc. (Silver Mountain or  the Company),             
an  Idaho corporation,  was  organized in  1952.   At  present  the             
Company is engaged  in no activity other than necessary maintenance             
work on its property.                                                           

On  June 15, 1954, Silver  Mountain entered into  an agreement with             
Hecla Mining  Company (Hecla) and  The Bunker Hill  Company (Bunker             
Hill) whereby  these two  companies would  explore and  develop the             
mining properties owned or  held by Silver Mountain and  would mine             
any  commercial  ore  deposits  discovered  as  a  result  of  this             
exploration and development.                                                    

The  contract  provided that  if commercial  ore  was found  on the             
Silver Mountain property, Hecla and  Bunker Hill would provide  all             
necessary mining equipment and  would mine the ore of  which Silver             
Mountain  would receive  25%  with Hecla  and  Bunker Hill  sharing             
equally  in the remaining 75%.  Any charges against Silver Mountain             
for such  costs, in excess  of their net  smelter returns  from any             
ores produced, would be  carried forward to  be paid only from  net             
profits from any future production of such property.                            

The  contract contained a provision  that when and  if a commercial             
ore body  was  discovered on  the  property  or after  a  total  of             
$1,000,000 had been expended on exploration and development of said             
property, Silver  Mountain would then own an undivided 25% interest             
in the property.                                                                

On October 7, 1959, Silver Mountain was advised by Hecla and Bunker             
Hill that exploration work, which cost in excess of $1,600,000, had             
been  performed  on  the property  under  the  terms  of the  above             
agreement.   $538,000  of such  costs was  advanced by  the Defense             
Minerals Exploration Administration.   After being notified of this             
fact,  Silver  Mountain deeded  to Hecla  and  Bunker Hill  each an             
undivided 37.5%  interest in the Silver Mountain property under the             
terms of the agreement.                                                         

Since the 1954  Agreement was  terminated on October  7, 1959,  the             
necessary  maintenance and assessment work on the property has been             
performed by Hecla  and Bunker  Hill or other  outside parties  and             
Silver Mountain has been charged 25% of such expenses.                          

On November 1, 1982, Bunker Limited Partnership purchased from  The             
Bunker  Hill   Company  all  of   its  Idaho  assets   and  certain             
liabilities.     Included  in  this  purchase   by  Bunker  Limited             
Partnership  were  its  37.5%   interest  in  the  Silver  Mountain             
property,  896,000  shares  of  Silver Mountain  stock,  and  notes             
receivable from Silver Mountain.  As a result of this purchase,                 

-2-             

10-K405 3rd Page of 18 TOC 1st Previous Next ↓Bottom Just 3rd

Bunker Limited  Partnership and  Hecla continued management  of the             
Silver Mountain property.                                                       

On June 6, 1988, the Company entered into a mining lease with Hecla             
whereby  Hecla received  the  exclusive right  to the  exploration,             
development and mining operations upon the Company's property for a             
period of 25 years subject to cancellation if the property  was not             
in production  within 15 years.   This lease was in  exchange for a             
net profits  royalty of  40%.  On  January 18, 1991, the  lease was             
terminated.                                                                     

At February  9, 1995, Bunker  Limited Partnership and  Hecla Mining             
Company, pursuant to an  agreement dated June 15, 1954,  each owned             
an undivided 37.5% interest in the Silver Mountain property.  Stock             
ownership of the two companies at February 9, 1995, was as follows:             

                 Shares Held as of        Percent of
                February 9, 1995         Ownership
                 -----------------        ----------

Bunker Limited Partnership          896,000                29.22%             
Hecla Mining Company                115,000                 3.75%             
                    ---------               ------
Total                       1,011,000                32.97%       
                    =========               ======

On February 10, 1995, Hecla Mining Company  acquired Bunker Limited             
Partnership's  37.5%  undivided  interest  in  the Silver  Mountain             
property and their  entire stock  interest in the  Company.   Hecla             
currently holds 1,011,000 or  32.97% shares of common stock  of the             
Company.                                                                        

From  November  1,  1982  to  December  31,  1994,  Bunker  Limited             
Partnership provided  the Company with general accounting services.             
Commencing  January  1, 1995,  Hecla  Mining  Company (which  owned             
32.97% of common stock from February 10, 1995 to December 31, 1996)             
provided accounting and legal services to Silver Mountain.  In 1995             
and  1996, Silver  Mountain paid  Hecla Mining Company  $9,000 each             
year for these  services.  At  December 31, 1996,  the Company  had             
obligations to Hecla Mining Company totaling $2,256 and $63,927 for             
accounts payable and notes payable, respectively.  At  December 31,             
1995,  the Company had obligations to Hecla Mining Company totaling             
$4,458  and  $63,927  for   accounts  payable  and  notes  payable,             
respectively.                                                                   

Silver Mountain  is an  inactive  company.   It  has no  known  ore             
reserves and at present  has no immediate plans for  developing the             
property.                                                                       

-3-             

10-K405 4th Page of 18 TOC 1st Previous Next ↓Bottom Just 4th

Item 2.   Property                                                              
--------                                                    

Silver Mountain's property is located  about one and one-half miles             
east of Mullan, Idaho.  In 1993, Silver Mountain, together with the             
co-owners  (Hecla  Mining Company  and Bunker  Limited Partnership)             
relinquished  its  rights  to  certain  unpatented  mining  claims,             
thereby reducing its property  ownership from a 25% interest  in 26             
patented claims,  93 unpatented  claims, and  160 acres  of mineral             
rights to a 25% interest in 37 patented mining claims and 160 acres             
of patented mineral property.                                                   

Item 3.   Legal Proceedings                                                     
-----------------                                           

None                                                                            

Item 4.   Submission of Matters to a Vote of Security Holders                   
---------------------------------------------------         

None                                                                            

-4-             

10-K405 5th Page of 18 TOC 1st Previous Next ↓Bottom Just 5th

PART II             
-------             

Item 5.   Market for the Registrant's Common Stock and Related                  
----------------------------------------------------        
Security Holder Matters                                     
-----------------------                                     

a.   The  Company's stock ceased to be traded on any stock exchange             
May 24, 1991, when the Spokane Stock Exchange (where the stock        
had  been listed)  discontinued operations.   At  February 28,        
1997, the bid and ask price for the Company's common stock was        
eight cents  and fifteen cents, respectively.   However, there        
has  not  been an  established trading  market for  the common        
stock since May 24, 1991, and,  as such, the bid and ask price        
do  not constitute a reliable  indication of the  price that a        
holder of common stock  could expect to receive upon  the sale        
of any particular quantity thereof.                                   

b.   As  of  February  28,  1997, there  were  approximately  1,058             
shareholders of the Company's common stock.                           

c.   The  Company  has paid  no dividends  and does  not anticipate             
being able to pay any dividends in the foreseeable future.            

-5-             

10-K405 6th Page of 18 TOC 1st Previous Next ↓Bottom Just 6th

Item 6.   Selected Financial Data                                               
-----------------------                                     

The Company is an  inactive company.  A  summary of its  operations             
for the five-year period ended December 31, 1996 is as follows:                 

                                                                [Download Table]

                           1996        1995        1994        1993        1992    
                        ----------  ----------  ----------  ----------  ---------- 
                                                                                   
Income:                                                                            
  Net timber proceeds                                                              
                        $      - -  $      - -  $      - -  $      - -  $   28,318 
  Other                      2,400       2,478       1,685       1,845       1,645 
                        ----------  ----------  ----------  ----------  ---------- 

    Total income             2,400       2,478       1,685       1,845      29,963 

Administrative expense      (9,646)     (9,245)     (1,390)     (1,931)     (1,573)
                        ----------  ----------  ----------  ----------  ---------- 

Net income (loss) from                                                             
  operations before                                                                
  income taxes              (7,246)     (6,767)        295         (86)     28,390 

Provision for income                                                               
  taxes                         30          33          10       4,431         - - 
                        ----------  ----------  ----------  ----------  ---------- 

Net income (loss)       $   (7,276) $   (6,800) $      285  $   (4,517) $   28,390 
                        ==========  ==========  ==========  ==========  ========== 

Net income (loss)                                                                  
  per common share      $ (0.00237) $ (0.00222) $  0.00009  $ (0.00147) $  0.00926 
                        ==========  ==========  ==========  ==========  ========== 

Total assets            $  389,241  $  398,719  $  401,505  $  401,327  $  402,881 
                        ==========  ==========  ==========  ==========  ========== 

Long-term debt          $   63,927  $   63,927  $   63,927  $   63,927  $   63,927 
                        ==========  ==========  ==========  ==========  ========== 

No  cash  dividends were  declared  in the  five-year  period ended             
December 31, 1996.                                                              

-6-             

10-K405 7th Page of 18 TOC 1st Previous Next ↓Bottom Just 7th

Item 7.   Management's Discussion and Analysis of Financial                     
-------------------------------------------------           
Condition and Results of Operations                         
-----------------------------------                         

The  Company's general  financial condition  remained substantially             
unchanged  during 1996 compared to 1995.  Cash and cash equivalents             
decreased  $9,478  (15%) from  $61,565  at  December 31,  1995,  to             
$52,087 at  December  31, 1996.   Working  capital declined  $7,276             
(13%) from $57,107 at December 31, 1995  to $49,831 at December 31,             
1996.    The decreases  in cash  and  cash equivalents  and working             
capital are primarily attributable to administrative expenses and a             
$78 decrease in income.                                                         

The 1996 net loss of $7,276 was $476 more than the net loss in 1995             
totaling  $6,800.     This  decrease  in   earnings  was  primarily             
attributable to  a $401 increase  in administrative expenses  and a             
$78 decrease in income.                                                         

The Company  expects to keep the property on a care-and-maintenance             
basis.   Management believes that  the Company has  sufficient cash             
and cash equivalents at December 31, 1996, to meet  its present and             
intermediate financial requirements.                                            

The Company is presently inactive and is no longer considered to be             
in  the development  stage.    All  costs  are  being  expensed  as             
incurred.   Through December 31, 1994, the Company was considered a             
development stage company.                                                      

The information reported under Item  6. Selected Financial Data and             
Item  8.  Financial  Statements and  Supplementary  Data  regarding             
financial condition is incorporated herein by reference.                        

Item 8.   Financial Statements and Supplementary Data                           
-------------------------------------------                 

-7-             

10-K405 8th Page of 18 TOC 1st Previous Next ↓Bottom Just 8th
SILVER MOUNTAIN LEAD MINES, INC.            
UNAUDITED BALANCE SHEETS            
December 31, 1996 and 1995            
----------            

                                                                [Download Table]

                                             ASSETS                          
                                                            1996       1995  
                                                         ---------  ---------
                                                                             
Current assets:                                                              
  Cash and cash equivalents                              $  52,087  $  61,565
                                                         ---------  ---------

        Total current assets                                52,087     61,565
                                                         ---------  ---------
Property, plant and equipment                                                
    Mining claims                                          307,095    307,095
    Deferred development costs                              30,059     30,059
                                                         ---------  ---------
                                                           337,154    337,154
                                                         ---------  ---------

        Total assets                                     $ 389,241  $ 398,719
                                                         =========  =========

                              LIABILITIES AND STOCKHOLDERS' EQUITY           

Current liabilities:                                                         
  Accounts payable                                       $   2,256  $   4,458
                                                         ---------  ---------

        Total current liabilities                            2,256      4,458
                                                         ---------  ---------

Long-term liabilities:                                                       
  Note payable - Hecla Mining Company                       63,927     63,927
                                                         ---------  ---------

        Total liabilities                                   66,183     68,385
                                                         ---------  ---------

Stockholders' equity:                                                        
Common stock; nonassessable, par value                                       
  $0.10 per share 5,000,000 shares authorized,                               
  3,066,000 shares outstanding                             306,600    306,600
Accumulated surplus                                         16,458     23,734
                                                         ---------  ---------
                                                           323,058    330,334
                                                         ---------  ---------

        Total liabilities and stockholders' equity       $ 389,241  $ 398,719
                                                         =========  =========

                 The accompanying notes are an integral part
              of the financial statements.

                 -8-

10-K405 9th Page of 18 TOC 1st Previous Next ↓Bottom Just 9th

SILVER MOUNTAIN LEAD MINES, INC.            

UNAUDITED STATEMENTS OF INCOME AND ACCUMULATED SURPLUS            

For the years ended December 31, 1996, 1995, and 1994             
_________             

                                                                [Download Table]

                                              1996         1995         1994  
                                           ---------     --------    ---------
                                                                              
Income:                                                                       
  Transfer fees                            $      96     $     32     $     44
  Interest income                              2,304        2,446        1,641
                                           ---------     --------     --------
    Total income                               2,400        2,478        1,685
                                           ---------     --------     --------

Expenses:                                                                     
  Accounting and legal fees                    9,000        9,000        1,000
  Office expenses                                 96          (20)         - -
  Filing fees                                    250          250          250
  Property taxes                                 - -         (230)         104
  Stock transfer expense                         300          245           36
                                           ---------     --------     --------

    Total expenses                             9,646        9,245        1,390

Income (loss) from operations                                                 
  before provision for income taxes           (7,246)      (6,767)         295
  Provision for income taxes                      30           33           10
                                           ---------     --------     --------

Net income (loss)                             (7,276)      (6,800)         285

Accumulated surplus at beginning                                              
  of year                                     23,734       30,534       30,249
                                           ---------     --------     --------

Accumulated surplus at end of year         $  16,458     $ 23,734     $ 30,534
                                           =========     ========     ========

Net income (loss) per common share         $(0.00237)    $(0.00222)   $0.00009
                                           =========     =========    ========

Cash dividends per share                       $ - -        $ - -        $ - -
                                               =====        =====        =====

Weighted average number of common                                             
  shares outstanding                       3,066,000    3,066,000    3,066,000
                                           =========    =========    =========

                The accompanying notes are an integral
               part of the financial statements.

                 -9-

10-K405 10th Page of 18 TOC 1st Previous Next ↓Bottom Just 10th

SILVER MOUNTAIN LEAD MINES, INC.            

UNAUDITED STATEMENTS OF CASH FLOWS            

For the years ended December 31, 1996, 1995 and 1994            
_________             

                                                                [Download Table]

                                                    1996       1995       1994   
                                                  --------   --------   -------- 
                                                                                 
Operating activities:                                                            
  Net income (loss)                               $ (7,276)  $ (6,800)  $    285 

Change in:                                                                       
  Accounts payable                                  (2,202)     4,014       (107)
                                                  --------   --------   -------- 
Net cash provided (used) by operating                                            
  activities                                        (2,202)    (2,786)       178 
                                                  --------   --------   -------- 

Net increase (decrease) in cash and cash                                         
  equivalents                                       (9,478)    (2,786)       178 

Cash and cash equivalents at beginning of period    61,565     64,351     64,173 
                                                  --------   --------   -------- 

Cash and cash equivalents at end of period        $ 52,087   $ 61,565   $ 64,351 
                                                  ========   ========   ======== 

Supplemental disclosure of cash flow information                                 
  Cash paid during period for income tax          $     30   $     33   $     10 
                                                  ========   ========   ======== 


    The accompanying notes are an integral part of the financial statements.

                -10-

10-K405 11th Page of 18 TOC 1st Previous Next ↓Bottom Just 11th

SILVER MOUNTAIN LEAD MINES, INC.            

NOTES TO FINANCIAL STATEMENTS             

--------------            

NOTE 1:   SIGNIFICANT ACCOUNTING POLICIES                                       

The Company is presently inactive and is no longer considered to be             
in  the exploration and development stage.  All costs are presently             
being expensed as incurred.                                                     

No  provision has been made  for depreciation since  the Company is             
inactive.                                                                       

The Company considers cash equivalents  to consist of highly liquid             
investments  with a remaining maturity of three months or less when             
purchased.                                                                      

Property, plant and  equipment are stated at  the lower of cost  or             
estimated net realizable value.   Maintenance, repairs and renewals             
are charged to operations.  Betterments of a major nature would  be             
capitalized.   When  assets  are retired  or  sold, the  costs  and             
related allowances for depreciation and amortization are eliminated             
from the  accounts and any resulting  gain or loss is  reflected in             
operations.    Idle  facilities,  placed on  a  standby  basis, are             
carried at the lower of net book value or estimated  net realizable             
value.    Effective  January  1,  1996,  the  Company  adopted  the             
provisions of Statement of Financial Accounting Standards, No. 121,             
"Accounting for the Impairment  of Long-Lived Assets and  for Long-             
Lived Assets  to be Disposed Of"  (SFAS No. 121).   The adoption of             
the  provisions of  SFAS  No. 121  had  no material  effect on  the             
results of operations or financial condition of the Company.                    

NOTE 2:   PROPERTY, PLANT AND EQUIPMENT                                         

The Company  acquired its  property located  in  the Coeur  d'Alene             
Mining District,  Shoshone County, Idaho,  for cash of  $494.50 and             
through  issuance of 3,066,000 shares of capital stock.  A total of             
316,000 shares were issued to officers and/or directors at the date             
of  issuance including  92,600  shares issued  to current  officers             
and/or directors.                                                               

NOTE 3:   LONG-TERM LIABILITIES                                                 

The  notes payable  to Hecla  Mining Company  represent noninterest             
bearing  advances for annual assessment work which are to be repaid             
only from production should a commercial  ore deposit be discovered             
and mined.   At December 31, 1996 and 1995,  the Company owed Hecla             
Mining Company $63,927 for such advances.                                       

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NOTE 4:   RELATED PARTIES                                                       

At February  9, 1995, Bunker  Limited Partnership and  Hecla Mining             
Company, pursuant to an  agreement dated June 15, 1954,  each owned             
an undivided 37.5% interest in the Silver Mountain property.  Stock             
ownership of the two companies at February 9, 1995, was as follows:             

                 Shares Held as of        Percent of
                February 9, 1995         Ownership
                 -----------------        ----------

Bunker Limited Partnership          896,000               29.22%              
Hecla Mining Company                115,000                3.75%              
                   ---------              ------
Total                       1,011,000               32.97%        
                   =========              ======

On February 10, 1995, Hecla Mining Company  acquired Bunker Limited             
Partnership's  37.5%  undivided  interest  in the  Silver  Mountain             
property  and  its entire  stock interest  in  the Company.   Hecla             
currently holds 1,011,000 or  32.97% shares of common stock  of the             
Company.                                                                        

From November  1,  1982,  to  December  31,  1994,  Bunker  Limited             
Partnership  provided the Company with general accounting services.             
Commencing  January  1, 1995,  Hecla  Mining  Company (which  owned             
32.97% of common stock from February 10, 1995 to December 31, 1996)             
provided accounting and legal services to Silver Mountain.  In 1995             
and  1996, Silver  Mountain paid  Hecla Mining Company  $9,000 each             
year for  these services.   At December  31, 1996, the  Company had             
obligations to Hecla Mining Company totaling $2,256 and $63,927 for             
accounts payable and notes payable, respectively.  At  December 31,             
1995,  the Company had obligations to Hecla Mining Company totaling             
$4,458  and  $63,927  for   accounts  payable  and  notes  payable,             
respectively.                                                                   

NOTE 5:   FAIR VALUE OF FINANCIAL INSTRUMENTS                                   

The  following estimated  fair value  amounts have  been determined             
using   available  market  information  and  appropriate  valuation             
methodologies.   However,  considerable  judgment  is  required  to             
interpret market data and  to develop the estimates of  fair value.             
Accordingly,  the estimates  presented herein  are not  necessarily             
indicative  of the amounts the  Company could realize  in a current             
market exchange.                                                                

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The  following methods  and assumptions were  used to  estimate the             
fair value of each class  of financial instruments for which  it is             
practicable  to   estimate  that  value.     Potential  income  tax             
ramifications related  to the  realization of unrealized  gains and             
losses that would be incurred in an actual  sale or settlement have             
not been taken into consideration.                                              

The  carrying amounts  for cash  and cash  equivalents and  current             
liabilities are a reasonable estimate of their fair values.                     

The estimated fair values of financial instruments are as follows:              

                                                        [Enlarge/Download Table]

                                                        December 31,                   
                                      -------------------------------------------------
                                              1996                        1995         
                                      ----------------------     --------------------- 
                                       Carrying       Fair       Carrying        Fair  
                                        Amounts       Value       Amounts        Value 
                                      ---------     --------     --------     -------- 
                                                                                       
Financial assets                                                                       
  Cash and cash equivalents            $ 52,087     $ 52,087     $ 61,565     $ 61,565 
Financial liabilities                                                                  
  Accounts payable                        2,256        2,256        4,458        4,458 
  Note payable - Hecla Mining Co.        63,927          (A)       63,927          (A) 

(A)  Fair value information is not available.                                          

Item 9.   Disagreements on Accounting and Financial Disclosure                  
----------------------------------------------------        

Not applicable.                                                                 

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PART III            
--------            

Item 10.  Directors and Executive Officers of the Registrant                    
--------------------------------------------------          

The names,  ages and  present principal occupation  of management's             
nominees,  other directorships held by them and the year each first             
became a director are set forth in the table below.                             

                                                                [Download Table]

Name, Age & Date First Elected   Principal Occupation & Directorships  
------------------------------   ------------------------------------  
                                                                       
MICHAEL B. WHITE                 Vice President - Secretary and General
Director since March 20, 1995    Counsel of Hecla Mining Company,      
Age 46                           Coeur d'Alene, Idaho                  

JOHN P. STILWELL                 Vice President - Chief Financial      
Director since January 2, 1996   Officer and Treasurer of Hecla Mining 
Age 44                           Company, Coeur d'Alene, Idaho         

VINCENT R. NEWBURY               Independent  prospector, Desert Hot   
Director since 1952              Springs, California                   
Age 85                                                                 

On  March 20, 1995, Messrs.  White and Heatherly  were appointed as             
directors  to  fill  the vacancies  on  the  Board  created by  the             
resignation  of Messrs.  Griffith and  Grismer.   Messrs. Kendrick,             
Anson and Barlow  have also resigned from the Board.  Mr. Heatherly             
retired  and  on January  2, 1996,  Mr.  Stilwell was  appointed as             
director.                                                                       

                                                                [Download Table]

                         EXECUTIVE OFFICERS                        

Name                             Age                 Office        
------------------------------------------------------------------ 
                                                                   
Michael B. White                 46                  President     
John P. Stilwell                 44                  Vice President
Nathaniel K. Adams               35                  Secretary     

Item 11.  Executive Compensation                                                
----------------------                                      

Silver  Mountain paid no remuneration  in 1996 to  its officers and             
directors.    Any  compensation that  may  have  been  paid to  the             
officers and directors of Silver Mountain for their services to the             
Company was paid  by their respective principal employers.   Silver             
Mountain  has no compensation plans  for its officers and directors             
and there are no stock options outstanding.                                     

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Hecla has in the past engaged in necessary maintenance  work on the             
Silver  Mountain property  and required  assessment work  on Silver             
Mountain's unpatented mining claims.  As of December 31, 1994,                  
Hecla  had advanced to Silver Mountain the aggregate sum of $38,038             
and Bunker Limited Partnership, by virtue of its purchase of Bunker             
Hill's interest,  had advanced in  the aggregate  $23,889.   Silver             
Mountain was additionally indebted  to Bunker Limited  Partnership,             
by  virtue of its purchase of Bunker Hill's interest, in the amount             
of $2,000 on  a note issued in 1954 which is  to be repaid, without             
interest, only from production should  a commercial ore deposit  be             
discovered and mined.  In 1995, Bunker Limited Partnership sold its             
interest in the Company and in notes receivable from the Company to             
Hecla Mining Company.                                                           

Item 13.  Certain Relationships and Related Transactions                        
----------------------------------------------              

From  November  1,  1982  to  December  31,  1994,  Bunker  Limited             
Partnership  provided the Company with general accounting services.             
Commencing  January  1, 1995,  Hecla  Mining  Company (which  owned             
32.97% of common stock from February 10, 1995 to December 31, 1996)             
provided accounting and legal services to Silver Mountain.  In 1995             
and 1996, Silver  Mountain paid  Hecla Mining  Company $9,000  each             
year  for these services.   At December  31, 1996, the  Company had             
obligations to Hecla Mining Company totaling $2,256 and $63,927 for             
accounts payable and  notes payable, respectively.  At December 31,             
1995, the Company had obligations  to Hecla Mining Company totaling             
$4,458  and  $63,927  for   accounts  payable  and  notes  payable,             
respectively.                                                                   

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PART IV             
-------             

Item 12.  Security Ownership of Certain Beneficial Owners &                     
-------------------------------------------------           
Management                                                  
----------                                                  

As  of  December  31, 1996,  there  were  3,066,000  shares of  the             
Company's common stock, par value $.10 per share outstanding.                   

The table below sets forth, as  of December 31, 1996, the number of             
shares  of the  Company's outstanding  common stock  held by  Hecla             
Mining Company.                                                                 

                                                                [Download Table]

Name & Address of           Amount and Nature                           
Beneficial Owner            of Beneficial Ownership     Percent of Class
-----------------           -----------------------     ----------------
                                                                        
Hecla Mining Company        1,011,000 shares direct        32.97%       
 6500 Mineral Drive         (Sole voting & investment                   
 Coeur d'Alene, ID 83814    power)                                      

The Company  is not aware of  any person (including any  "group" as             
that term  is used in Section 13 (d) (3) of the Securities Exchange             
Act of 1934), other than as set forth above, who  is the beneficial             
owner of more than five percent of the Company's common stock as of             
December 31, 1996.                                                              

On February 10, 1995, Hecla Mining Company acquired  Bunker Limited             
Partnership's  37.5%  undivided  interest  in the  Silver  Mountain             
property and their  entire stock  interest in the  Company.   Hecla             
currently holds 1,011,000 or  32.97% shares of common stock  of the             
Company.                                                                        

The table below sets forth, as  of December 31, 1996, the number of             
shares  of the  Company's outstanding  stock held  by the  director             
nominees  individually  and by  all directors  and officers  of the             
Company as a group:                                                             

                                                                [Download Table]

                         Amount and Nature                         
Name                     of Beneficial Ownership   Percent of Class
----                     -----------------------   ----------------
                                                                   
Vincent R. Newbury       75,000 shares direct*         2.45%       

*The  direct beneficial owner is  believed to have  sole voting and             
investment power.                                                               

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Item l4.  Exhibits, Financial Statement Schedules and Reports on                
------------------------------------------------------      
Form 8-K                                                    
--------                                                    

(a) (1) and (2)  All Financial Statements:                                      
 Unaudited Balance Sheets, December 31, 1996 and
1995                                      
Unaudited Statements of Income and Accumulated
    Surplus for the Years Ended December 31, 1996,
1995 and 1994                             
  Unaudited Statements of Cash Flows for the Years
Ended December 31, 1996, 1995 and 1994    
Notes to Financial Statements                 

(a) (3) and (c)  Exhibits:                                                      

    The   exhibit  numbers   in  the   following  list
    correspond   to  the  numbers   assigned  to  such
exhibits in Item 601 of Regulation S-K.       

Number       Description of Exhibits          
------       -----------------------          

27         Financial Data Schedule        

(b)              Reports on Form 8-K:                                           

None                                          

(d)              Financial Statements Required  by Regulations  S-X             
    which  are  excluded  from  the annual  report  to
shareholders:                                 

None                                          

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SIGNATURES            
----------            

Pursuant to the  requirements of  Section 13 or  15(d) of  the        
Securities Exchange  Act of 1934,  the Registrant  has duly  caused             
this annual  report to be signed on  its behalf by the undersigned,             
thereunto duly authorized, on March 26, 1997.                                   

            SILVER MOUNTAIN LEAD MINES, INC.

     By /s/   Michael B. White
               -------------------------------
                 Michael B. White, President
                and Director

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 on  the dates             
indicated.                                                                      

/s/ Michael B. White    3/26/97     /s/ John P. Stilwell    3/26/97             
-------------------------------     -------------------------------             
Michael B. White         Date       John P. Stilwell         Date               
President and Director              Vice President and Director                 
Chief Executive Officer             Chief Accounting Officer                    

/s/ Nathaniel K. Adams  3/26/97     /s/ Vincent R. Newbury  3/26/97             
-------------------------------     -------------------------------             
Nathaniel K. Adams       Date       Vincent R. Newbury       Date               
Secretary                           Director                                    

/s/ David F. Wolfe      3/26/97                                                 
-------------------------------                                                 
David F. Wolfe           Date                                                   
Chief Financial Officer                                                         

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Dates Referenced Herein and Documents Incorporated by Reference

		Referenced-On Page
This ‘10-K405’ Filing	Date	First	Last	Other Filings

Filed on:	3/26/97	18
	2/28/97	1	5
For Period End:	12/31/96	1	17
	1/2/96	14
	1/1/96	11
	12/31/95	3	17	10-K405
	3/20/95	14
	2/10/95	3	16
	2/9/95	3	12
	1/1/95	3	15
	12/31/94	3	17
				List all Filings

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Filing Submission 0000090366-97-000002 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

Silver Mountain Lead Mines Inc – ‘10-K405’ for 12/31/96

As of: Wednesday, 3/26/97 · For: 12/31/96 · Accession #: 90366-97-2 · File #: 1-03728

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Annual Report — [x] Reg. S-K Item 405 — Form 10-KFiling Table of Contents

10-K405 — Silver Mountain Lead Mines Form 10-KDocument Table of Contents

Dates Referenced Herein and Documents Incorporated by Reference

Annual Report — [x] Reg. S-K Item 405 — Form 10-K
Filing Table of Contents

10-K405 — Silver Mountain Lead Mines Form 10-K
Document Table of Contents