Page No. |
||||
Summary
Information
|
||||
The
Company
|
||||
Capital
Activities in 2004 and First Quarter 2005
|
6
|
|||
USE
|
7
|
|||
RMG
|
7
|
|||
Sutter
Gold Mining Inc.
|
8
|
|||
Molybdenum
|
9
|
|||
Uranium
|
9
|
|||
Capital
Activities in Second Quarter 2005
|
9
|
|||
RMG
|
9
|
|||
Summary
Information About the Subsidiaries
|
12
|
|||
Segment
Information
|
13
|
|||
Business
of the Company
|
13
|
|||
Business
and Properties
|
13
|
|||
Research
and Development
|
25
|
|||
Environmental
|
25
|
|||
Employees
|
26
|
|||
Mining
Claim Holdings
|
26
|
|||
Legal
Proceedings
|
27
|
|||
The
Offering
|
29
|
|||
Risk
Factors
|
29
|
|||
Risk
Factors Involving the Company
|
29
|
|||
We
have a history of operating losses, and in 2005 and 2006, our working
capital needs are expected
to
come mostly from liquidating investments. These sources of capital
may not
be sufficient to
develop
our mineral properties, none of which have proved
reserves.
|
29
|
|||
Uncertainties
in the value of the mineral properties.
We
are subject to certain kinds of risk which
are
unique to the minerals business
|
30
|
|||
Compliance
with environmental
regulations
may be costly
|
31
|
|||
The
Company’s poison pill could discourage
some
advantageous transactions
|
31
|
|||
Risk
Factors Involving This Offering
|
32
|
|||
Future
equity transactions, including exercise of options or warrants,
could
result in dilution; and registration for public resale of the
common
stock in these transactions may depress stock prices
|
32
|
|||
Terms
of subsequent financings may
adversely
impact your investment
|
32
|
|||
Representations
About This Offering
|
32
|
|||
Forward
Looking Statements
|
33
|
|||
Use
of Proceeds
|
33
|
|||
Dilution
|
33
|
|||
Capitalization
|
35
|
|||
Selling
Shareholders
|
35
|
|||
Plan
of Distribution
|
42
|
|||
Market
for Common Stock, Related Stockholder
Matters
and Issuer Purchases of Equity Securities
|
43
|
|||
Selected
Financial Data
|
45
|
|||
Management's
Discussion and Analysis of
Financial
Condition and Results of Operations
|
49
|
|||
Directors
and Officers
|
75
|
|||
Certain
Relationships and Related Transactions
|
86
|
|||
Principal
Accounting Fees and Services
|
94
|
|||
Description
of Securities
|
94
|
|||
Disclosure
of Commission Position on Indemnification
|
96
|
|||
Where
to Find More Information About Us
|
96
|
|||
Legal
Matters
|
97
|
|||
Experts
|
97
|
|||
Financial
Statements for the Three Years Ended
December
31, 2004
|
98
|
|||
Financial
Statements for the Six Months
Ended
June 30, 2005
|
157
|
· |
USE’s
and Crested's portions of Enterra Initial Units was reduced by 16,983
and
9,331 Enterra Initial Units (for their portions of the $500,000 cash
component); and by another 9,035 and 4,965 Enterra Initial Units
(for
their portions of $266,000 of the total amount paid to buy out and
cancel
overriding royalty interests held by mezzanine lenders on certain
gas
properties owned by RMG, which buy out was required by the agreement
with
Enterra). USE issued to the mezzanine lenders warrants to purchase
a total
of 50,000 shares of common stock of USE; the exercise price will
be valued
at the Nasdaq Official Close Price at a date to be selected, anticipated
to be in the third quarter of 2005.
|
· |
USE's
portion of the class D shares of Acquisitions was reduced by 10,664
class
D shares which were issued to a secured lender of USE (see "Restructuring
of USE Debt" below).
|
Percent
|
Primary
|
|
Subsidiary
|
Owned
by USE(1)
|
Business
Conducted
|
Plateau
Resources Limited
|
100%
|
Uranium
(Utah) - inactive mill - shut down, application filed to reopen and
operate
|
Rocky
Mountain Gas, Inc.(2)(3)
|
91.1%
|
CBM
- active
|
Crested
Corp.
|
70.1%
|
Uranium
and molybdenum (inactive and shut down, with limited reactivation
in
uranium planned for 2005), gold (being reactivated on a limited basis),
and exploration and production activities on CBM properties.
|
Sutter
Gold Mining Inc.(2)
|
65.5%
|
Gold
(California) - inactive - being reactivated
|
Four
Nines Gold, Inc.
|
50.9%
|
Contract
Drilling/Construction - inactive
|
USECC
Joint Venture
|
50.0%
|
Uranium
and molybdenum (inactive and shut down, with limited reactivation
in
Wyoming uranium planned for 2005), gold (being reactivated), and
CBM.
Limited real estate and airport operations.
|
Yellowstone
Fuels, Corp.
|
35.9%
|
Uranium
(Wyoming) - inactive - shut down
|
Pinnacle
Gas Resources, Inc.(2)
|
16.7%
|
CBM
exploration and production - active
|
(2)
|
Includes
ownership of Crested Corp. in RMG, Sutter Gold Mining Inc., and Pinnacle
Gas Resources, Inc.
|
Net
Present
|
||||
Reserves
|
Value
|
|||
|
(MCF)
|
(discounted
at 10%)
|
||
Proved
Developed Producing
|
1,651,666
|
$3,486,400
|
||
Proved
Developed Non-Producing
|
889,051
|
$2,304,800
|
||
Proved
Undeveloped
|
515,224
|
$
723,400
|
||
Total
|
3,055,941
|
$6,514,600
|
Year
Ended
December
31,
|
||
2004
|
||
Sales
volume (mcf)
|
728,051
|
|
Average
sales price per mcf(1)
|
$4.05
|
|
Average
cost per mcf(2)
|
$3.19
|
(1)
|
Represents
the weighted average of selling 92% of production at fixed contract
prices
and 8% at the market.
|
(2)
|
Includes
direct lifting costs (labor, repairs and maintenance, materials and
supplies, workover costs, insurance and property, gathering, compression,
marketing and severance taxes).
|
Year
Ended
|
Year
Ended
|
Seven
Months Ended
|
Year
Ended
|
||||||||||
December
31,
|
December
31,
|
December
31,
|
May
31,
|
||||||||||
2004
|
2003
|
2002
|
2002
|
||||||||||
Acquisition
costs
|
$
|
6,613,900
|
$
|
107,100
|
$
|
936,200
|
$
|
192,600
|
|||||
Development
|
1,642,600
|
158,300
|
97,200
|
87,400
|
|||||||||
$
|
8,256,500
|
$
|
265,400
|
$
|
1,033,400
|
$
|
280,000
|
October
29, 2004
|
$
175,000
|
Paid
|
November
29, 2004
|
$
175,000
|
Paid
|
June
29, 2005
|
$
500,000
|
Paid
on July 6, 2005 and 1,000,000 common shares of UPC stock delivered
on July
24, 2005
|
June
29, 2006
|
$
800,000
|
and
750,000 common shares of UPC stock
|
December
29, 2006
|
$
800,000
|
and
750,000 common shares of UPC stock
|
June
29, 2007
|
$
800,000
|
and
750,000 common shares of UPC stock
|
December
29, 2007
|
$
800,000
|
and
750,000 common shares of UPC stock
|
Total
|
$
4,050,000
|
and
4,000,000 common shares of UPC
stock
|
Securities
Outstanding
|
18,580,199
shares of common stock, $0.01 par value.
|
Securities
To Be Outstanding
|
19,344,425
shares, assuming warrants on 764,226 shares held by the selling
shareholders were exercised as of the date of this prospectus. See
"Description of Securities - Options and Warrants" and "Selling
Shareholders."
|
Securities
Offered
|
1,509,562
shares owned or to be owned by the selling shareholders.
|
Use
of Proceeds
|
We
will not receive any proceeds from sale of shares by the selling
shareholders, but we will receive up to $2,558,800 in proceeds from
exercise of the warrants and options, if they are exercised, which
will be
used for working capital.
|
Plan
of Distribution
|
The
offering is made by the selling shareholders named in this prospectus,
to
the extent they sell shares. Sales may be made in the open market
or in
private negotiated transactions, at fixed or negotiated prices. See
"Plan
of Distribution."
|
Risk
Factors
|
An
investment is subject to risk. See "Risk
Factors."
|
· |
The
profitable mining and processing of uranium and vanadium at and in
the
vicinity of Plateau’s properties in Utah will depend on many factors:
Obtaining properties in proximity to the Shootaring Mill to keep
transportation costs economic; delineation through extensive drilling
and
sampling of sufficient volumes of mineralized material with sufficient
grades, to make mining and processing economic over time; continued
sustained high prices for uranium oxide and vanadium; obtaining the
capital required to upgrade the Shootaring Mill and add a vanadium
circuit; and obtaining and continued compliance with operating permits.
|
· |
The
profitable mining at the Sheep Mountain properties in Wyoming will
depend
on: Evaluations of existing data to define sufficient volumes of
mineralized material, with sufficient grades, to make mining and
processing economic over time; continued sustained high prices for
uranium
oxide and UPC and the Company having sufficient capital to complete
the
drilling and sampling work. In addition, there is no operating mill
near
Sheep Mountain. The ultimate economics of mining the Sheep Mountain
properties will depend on access to the Sweetwater, Wyoming mill
(not now
in operation) or sufficiently high uranium oxide prices to warrant
shipments to faraway mills.
|
· |
The
profitable mining and processing of gold by Sutter Gold Mining Inc.
will
depend on many factors, including receipt of final permits and keeping
in
compliance with permit conditions; delineation through extensive
drilling
and sampling of sufficient volumes of mineralized material, with
sufficient grades, to make mining and processing economic over time;
continued sustained high prices for gold; and obtaining the capital
required to initiate and sustain mining operations and build and
operate a
gold processing mill.
|
· |
We
have not yet obtained full feasibility studies on any of our mineral
properties. These studies would establish the economic viability,
or not,
of the different properties based on extensive drilling and sampling,
the
design and costs to build and operate processing mills, the cost
of
capital, and other factors. Feasibility studies can take many months
to
complete. These studies are conducted by professional third party
consulting and engineering firms, and will have to be completed,
at very
considerable cost, to determine if the deposits contain proved reserves
(amounts of minerals in sufficient grades that can be extracted profitably
under current pricing assumptions for development and operating costs
and
commodity prices). A feasibility study usually must be completed
in order
to raise the substantial capital needed to put a property into production.
In addition, we have not established any if there are any reserves
(economic deposits of mineralized materials) on any of our
uranium/vanadium or gold properties, and future studies may indicate
that
some or all of the properties will not be economic to put into production.
|
· |
The
molybdenum property (in which the Company will have a substantial
interest
at such time as Phelps-Dodge conveys the Mt. Emmons properties back
to the
Company and Crested) has had extensive work conducted by prior owners,
but
this data will have to be updated to the level of a current feasibility
study to determine the viability of starting mining operations. Obtaining
mining and other permits to begin mining the molybdenum property
may be
very difficult, and, like any mining operation, capital requirements
for a
molybdenum mining operation will be
substantial.
|
Assumed
offering price per share
|
$4.11
|
|
NTBV
per share at June 30, 2005
|
$1.20
|
|
Increase
in NTBV per share
|
||
attributable
to
|
||
exercise
of warrants and options
|
$0.09
|
|
Pro
forma NTBV per share
|
||
as
of June 30, 2005
|
$1.29
|
|
Dilution
in pro forma NTBV
|
||
per
share for new investors
|
$2.82
|
June
30, 2005
|
||||||||||||||||
Pro
Forma
|
Pro
Forma
|
|||||||||||||||
Actual
|
Adjustments
|
(1)
|
As
Adjusted
|
|||||||||||||
Cash
and Cash Equivalents
|
$
|
4,703,000
|
$
|
2,558,800
|
(2
|
)
|
$
|
7,261,800
|
||||||||
(excluding
investments)
|
||||||||||||||||
Marketable
Securities
|
$
|
6,215,500
|
$
|
--
|
$
|
6,215,500
|
||||||||||
Investments
in Non-Affiliated Companies
|
$
|
14,129,800
|
$
|
--
|
$
|
14,129,800
|
||||||||||
--
|
||||||||||||||||
Long-term
Debt (Including Current Portias)
|
$
|
3,374,900
|
$
|
$3,374,900
|
||||||||||||
|
||||||||||||||||
Shareholders’
Equity
|
||||||||||||||||
Common
stock, unlimited number authorized,
|
17,908,466
|
764,226
|
18,672,692
|
|||||||||||||
17,908,466
shares issued and outstanding
|
$
|
179,100
|
$
|
7,700
|
$
|
186,800
|
||||||||||
Additional
Paid-in Capital
|
$
|
63,001,000
|
$
|
2,551,100
|
$
|
65,552,100
|
||||||||||
Accumulated
Deficit
|
$
|
(39,696,200
|
)
|
$
|
$(39,696,200
|
)
|
||||||||||
Total
shareholders’ Equity
|
$
|
21,442,400
|
$
|
2,558,800
|
$
|
24,001,200
|
||||||||||
(1) Gives
effect to the issuance of stock should all the selling shareholders’
outstanding warrants be exercised.
|
||||||||||||||||
(2)
The exercise prices of the warrants range from $2.00 to $4.30 per
share.
|
Number
of
|
Number
of
|
||||||
Shares
of
|
Shares
|
Percent
Owned
|
|||||
Common
Stock
|
To
Be
|
Before
|
After
|
||||
Owned(1)
|
Registered
|
Offering
|
Offering(2)
|
||||
A.
Clinton Allen
|
18,909(4)(5)
|
18,909
|
*
|
*
|
|||
1280
Massachusetts Ave. #200
|
|||||||
Cambridge,
MA 02138
|
|||||||
Ardell
J. Schelich
|
29,500
|
29,500
|
*
|
||||
347
Lake View Dr.
|
|||||||
Washington,
MO 93090
|
|||||||
Bathgate
McColley & Associates LLC
|
538
|
538
|
*
|
*
|
|||
5350
S. Roslyn Street, Suite 308
|
|||||||
Greenwood
Village, CO 80111
|
|||||||
Belmont
Navy, LLC
|
914(4)(5)
|
914
|
*
|
*
|
|||
111
Sixth Street
|
|||||||
Cambridge,
MA 02141
|
|||||||
Beverly
Karns
|
40,477(6)
|
40,477
|
*
|
*
|
|||
5424
South Geneva Way
|
|||||||
Englewood,
CO 80111
|
|||||||
Bourne
Capital LLC
|
252,263(4)(6)
|
252,263
|
1.3%
|
*
|
|||
410
Marion Street
|
|||||||
Denver,
CO 80218
|
|||||||
C.C.R.I.
Corporation
|
74,500
|
74,500
|
*
|
*
|
|||
3104
E. Camelback Rd., Suite 539
|
|||||||
Phoenix,
AZ 85016
|
Number
of
|
Number
of
|
||||||
Shares
of
|
Shares
|
Percent
Owned
|
|||||
Common
Stock
|
To
Be
|
Before
|
After
|
||||
Owned(1)
|
Registered
|
Offering
|
Offering(2)
|
||||
Curragh
Capital Partners, LLC
|
1,500(4)
|
1,500
|
*
|
*
|
|||
609
5th Avenue - 2nd Floor
|
|||||||
New
York, NY 10017
|
|||||||
David
Gertz
|
1,167(3)(4)
|
1,167
|
*
|
*
|
|||
7120
E. Orchard Rd. #300
|
|||||||
Greenwood
Village, CO 80111
|
|||||||
Donald
F. Kern
|
1,542
|
1,542
|
*
|
*
|
|||
2737
Nestlebrook Trail
|
|||||||
Virginia
Beach, VA 23456
|
|||||||
Donna
Schulze
|
1,116(4)(5)
|
1,116
|
*
|
*
|
|||
8777
E. Dry Creek Rd., Apt. 1422
|
|||||||
Englewood,
CO 80112
|
|||||||
Edward
J. Godin
|
1,000(4)
|
1,000
|
*
|
*
|
|||
7424
S. Chapparal Circle East
|
|||||||
Aurora,
CO 80016
|
|||||||
Frederick
P. Lutz
|
10,000(3)
|
10,000
|
*
|
*
|
|||
1089
Dunbarton Chase
|
|||||||
Atlanta,
GA 30319
|
|||||||
George
D. Thompson
|
222(4)(5)
|
222
|
*
|
*
|
|||
11710
W. 102 Place
|
|||||||
Overland
Park, KS 66214
|
|||||||
Gulf
Projects Investment Company
|
4,670(4)(5)
|
4,670
|
*
|
*
|
|||
Kuwait
Stock Exchange Building
|
|||||||
Safat
13066, Kuwait
|
|||||||
James
A. McCaughey
|
28,325(4)(5)(6)
|
28,325
|
*
|
*
|
|||
3
Cueta Drive
|
|||||||
Rancho
Mirage, CA 92270
|
|||||||
James
E. Hosch
|
1,231
|
1,231
|
*
|
*
|
|||
7038
Willa Lane
|
|||||||
Evergreen,
CO 80439
|
|||||||
James
J. Cahill
|
26,148(4)(5)
|
26,148
|
*
|
*
|
|||
57
Lawrence Hill Rd.
|
|||||||
Huntington,
NY 11743
|
James
V. Rauh
|
448(3)(4)(5)
|
448
|
*
|
*
|
|||
7234
South Uravan Ct.
|
|||||||
Aurora,
CO 60016
|
|||||||
Jason
Wayne Assad
|
12,500
|
12,500
|
*
|
*
|
|||
6585
Sterling Drive
|
|||||||
Suwanee,
GA 30024
|
|||||||
C
& H Capital, Inc.
|
24,500
|
24,500
|
*
|
*
|
|||
6585
Sterling Drive
|
|||||||
Suwanee,
GA 30024
|
|||||||
Jeffrey
J. Schmitz
|
213(4)
|
213
|
*
|
*
|
|||
5834
S. Paris Ct.
|
|||||||
Englewood,
CO 80111
|
*
|
*
|
|||||
John
J. Lais, III
|
448(4)(5)
|
448
|
*
|
*
|
|||
2602
Woodland Ct
|
|||||||
McKinney,
TX 75070
|
|||||||
John
Schlie
|
3,000(6)
|
3,000
|
*
|
*
|
|||
2406
West Davies Ave.
|
|||||||
Littleton,
CO 80120
|
|||||||
Lance
Herring
|
2,175(5)
|
2,175
|
*
|
*
|
|||
7163
S. Chapparal Cir. E
|
|||||||
Centennial,
CO 80016-2129
|
|||||||
Larry
A. Bach & Susan A. Bach
|
222(4)(5)
|
222
|
*
|
*
|
|||
501
W. Fairbanks Avenue
|
|||||||
Winter
Park, FL 32789
|
|||||||
Linda
Monahan
|
1,875(6)
|
1,875
|
*
|
*
|
|||
224
Anglers Drive South
|
|||||||
Marathon,
FL 33050
|
|||||||
Mark
A. & Kangping K.
|
|||||||
Lowenstein
Jtwros
|
135(4)
|
135
|
*
|
*
|
|||
12512
White Drive
|
|||||||
Sliver
Spring, MD 20904
|
|||||||
Marshall
G. Folkes, III
|
623
|
623
|
*
|
*
|
|||
3841
Houndstooth Court
|
|||||||
Richmond,
VA 23233
|
|||||||
Martin
G. Williams &
|
448(4)(5)
|
448
|
*
|
*
|
|||
Margaret
M. Williams
|
|||||||
13333
Long Leaf Dr.
|
|||||||
Clarksville,
MD 21029
|
Maury
Rogow
|
724(4)(5)
|
724
|
*
|
*
|
|||
1050
Taylor Street N #709
|
|||||||
Arlington,
VA 22201
|
|||||||
McKim
& Company LLC
|
19,500(6)
|
19,500
|
*
|
*
|
|||
8400
E. Cresent Parkway, Suite 600
|
|||||||
Greenwood
Village, CO 82111
|
|||||||
Mohamed
Ali Ahmed
|
448(4)(5)
|
448
|
*
|
*
|
|||
5052
Grimm Dr. #512
|
|||||||
Alexandria,
VA 23233
|
|||||||
Morgan
Stanley Dean Witter
|
448(4)(5)
|
448
|
*
|
*
|
|||
FBO
Thomas Garrity
|
|||||||
1857
Wainwright Dr.
|
|||||||
Reston,
VA 20190
|
|||||||
Murray
Roark
|
40,000(7)
|
40,000
|
*
|
*
|
|||
4400
Post Oak Parkway, Suite 1720
|
|||||||
Houston,
TX 77027
|
|||||||
Peyton
N. Jackson &
Linda
M. Jackson
|
8,652
|
8,652
|
*
|
*
|
|||
8704
Standish Rd.
|
|||||||
Alexandria,
VA 22308
|
|||||||
R.
A. Fitzner, Jr
|
235(5)
|
235
|
*
|
*
|
|||
P.
O. Box 8000-260
|
|||||||
Mesquite,
NV 89024
|
|||||||
Richard
Huebner
|
1,731
|
1,731
|
*
|
*
|
|||
16318
E. Berry Avenue
|
|||||||
Centennial,
CO 80115
|
|||||||
Robert
H. Taggart, Jr.
|
25,148(4)(5)
|
25,148
|
*
|
*
|
|||
4163
S. Chapparrel Circle East
|
|||||||
Aurora,
CO 80116
|
|||||||
Robert
S. Craig
|
20,000(7)
|
20,000
|
*
|
*
|
|||
2931
Highland Lakes Dr.
|
|||||||
Missouri
City, TX 77459
|
|||||||
Roger
Conan
|
448
|
448
|
*
|
*
|
|||
14
Oakley Road
|
|||||||
Dublin
6, Ireland
|
|||||||
Roy
Van Buskirk & Rachel Deutsch
|
682(4)(5)
|
682
|
*
|
*
|
|||
1513
Forest Lane
|
|||||||
McLean,
VA 22101
|
Sterne
Agee & Leach, Inc.
|
448(4)(5)
|
448
|
*
|
*
|
|||
C/F
Michael M. Vuocolo IRA
|
|||||||
813
Shades Creek Pkwy., Suite
|
|||||||
100B,
Birmingham, AL 35209
|
|||||||
Steven
Bathgate
|
1,835
|
1,835
|
*
|
*
|
|||
6376
E. Tufts Avenue
|
|||||||
Englewood,
CO 80112
|
|||||||
SJS
Holdings c/o Susan Schoch
|
4,615(4)(5)
|
4,615
|
*
|
*
|
|||
350
East 84th Street
|
|||||||
New
York, NY 10028
|
|||||||
Troy
G. Taggart
|
8,894(4)(5)
|
8,894
|
*
|
*
|
|||
21220
Craborchard Ct.
|
|||||||
Ashburn,
VA 20147
|
|||||||
Tsunami
Partners
|
303,169(4)
|
303,166
|
1.6%
|
*
|
|||
2011
Cedar Springs Rd., Apt. 506
|
|||||||
Dallas,
TX 75201
|
|||||||
Vicki
D.E. Barone
|
51
|
51
|
*
|
*
|
|||
7854
S. Harrison Circle
|
|||||||
Littleton,
CO 80122
|
|||||||
Vincent
Schmitz
|
1,167
|
1,167
|
*
|
*
|
|||
4207
Montview Blvd.
|
|||||||
Denver,
CO 80207
|
|||||||
Wayne
A. Moore
|
1,167(4)(5)
|
1,167
|
*
|
*
|
|||
P.
O. Box 68
|
|||||||
Rock
Falls, IL 61071
|
|||||||
William
Potter
|
101(4)
|
101
|
*
|
*
|
|||
498
Ridgewood Avenue
|
|||||||
Glen
Ridge, NJ 07028
|
|||||||
William
G. Van Buren
|
6,396(6)
|
6,396
|
*
|
*
|
|||
6576
Fairview Avenue
|
|||||||
Downers
Grove, IL
|
|||||||
Raymond
Lynde
|
65,566
|
65,566
|
*
|
*
|
|||
501
Clarion Dr.
|
|||||||
Gillette,
WY 82718
|
|||||||
Richard
Lynde
|
65,566
|
65,566
|
*
|
*
|
|||
P.
O. Box 325
|
|||||||
Gillette,
WY 82718
|
Steve
Youngbauer*
|
57,889
|
57,889
|
*
|
*
|
|||||||||
25
Buckhorn Flats Rd.
|
|||||||||||||
Riverton,
WY 82501
|
|||||||||||||
Carl
Andresen
|
15,611
|
15,611
|
*
|
*
|
|||||||||
8511
W. Donald Dr.
|
|||||||||||||
Peoria,
AZ 85383
|
|||||||||||||
Drawbridge
Special
|
|||||||||||||
Opportunities
Fund, LP
|
159,233(8)
|
159,233
|
*
|
*
|
|||||||||
1251
Avenue of the Americas
|
|||||||||||||
New
York, NY 10020
|
|||||||||||||
Highbridge/Zwirn
Special
|
159,232(8)
|
159,232
|
*
|
*
|
|||||||||
Opportunities
Fund, LP
|
|||||||||||||
745
Fifth Avenue, 18th Floor
|
|||||||||||||
New
York, NY 10151
|
|||||||||||||
(1)
|
Includes
shares underlying warrants or options which may not have yet been
exercised.
|
||||||||||||
(2)
|
Assumes
all shares registered for resale under this prospectus are sold by
the
selling shareholder.
|
||||||||||||
(3)
|
Includes
shares issuable on exercise of warrants and/or options at $2.00 per
share.
|
||||||||||||
(4)
|
Includes
shares issuable on exercise of warrants and/or options at $3.00 per
share.
|
||||||||||||
(5)
|
Includes
shares issuable on exercise of warrants and/or options at $3.75 per
share.
|
||||||||||||
(6)
|
Includes
shares issuable on exercise of warrants and/or options at $4.00 per
share.
|
||||||||||||
(7)
|
Includes
shares issuable on exercise of warrants at $4.30 per
share.
|
||||||||||||
(8)
|
Includes
shares issuable on exercise of warrants at $3.30 per
share
|
||||||||||||
*
|
Mr.
Youngbauer is Assistant General Counsel to the
Company.
|
*
|
block
trades in which the broker-dealer will attempt to sell the shares
as agent
but may position and resell a portion of the block as principal to
facilitate the transaction;
|
*
|
purchases
by a broker-dealer as principal and resale by the broker-dealer for
its
account;
|
*
|
an
exchange distribution in accordance with the rules of the applicable
exchange;
|
*
|
privately
negotiated transactions;
|
*
|
settlement
of short sales entered into after the date of this prospectus (a
short
sale occurs when shares, not owned by the seller, are sold in hopes
of a
decline in market price so the seller can purchase in the market
at a
lower price to be able to deliver the shares
sold);
|
*
|
broker-dealers
may agree with the selling stockholders to sell a specified number
of such
shares at a stipulated price per
share;
|
*
|
through
the writing or settlement of options or other hedging transactions,
whether through an options exchange or
otherwise;
|
*
|
a
combination of any such methods of sale;
or
|
*
|
any
other method permitted pursuant to applicable
law.
|
High
|
Low
|
||||||
Quarter
ended June 30, 2005
|
$
|
6.60
|
$
|
3.51
|
|||
Quarter
ended March 31, 2005
|
$
|
8.07
|
$
|
2.64
|
|||
Quarter
ended September 30, 2005
|
$
|
4.68
|
$
|
3.40
|
Fiscal
Year ended December 31, 2004
|
High
|
Low
|
|||||
First
quarter ended 3/31/04
|
$
|
3.45
|
$
|
2.41
|
|||
Second
quarter ended 6/30/04
|
3.14
|
2.11
|
|||||
Third
quarter ended 9/30/04
|
2.59
|
2.12
|
|||||
Fourth
quarter ended 12/31/04
|
3.05
|
2.10
|
|||||
Fiscal
Year ended December 31, 2003
|
|||||||
First
quarter ended 3/31/03
|
$
|
3.85
|
$
|
2.95
|
|||
Second
quarter ended 6/30/03
|
5.92
|
3.12
|
|||||
Third
quarter ended 9/30/03
|
5.70
|
3.15
|
|||||
Fourth
quarter ended 12/31/03
|
3.68
|
2.30
|
Plan
category
|
Number
of securities to be issued upon exercise of outstanding options
|
Weighted
average exercise price of outstanding options
|
Number
of securities remaining available for future issuance under equity
compensation plans (excluding securities reflected in column
(a))
|
|
(a)
|
(b)
|
(c)
|
Equity
compensation plans approved by security holders
|
|
|
|
1998
USE ISOP 3,250,000 shares of common stock on exercise of outstanding
options
|
1,266,505
|
$2.67
|
-0-
|
2001
USE ISOP 3,772,149 shares of common stock on exercise of outstanding
options
|
2,372,596
|
$2.85
|
1,399,553
|
Equity
compensation plans not approved by security holders
|
|
|
|
None
|
--
|
--
|
--
|
Total
|
3,639,101
|
$2.76
|
1,399,553
|
December
31,
|
May
31,
|
|||||||||||||||||||||
2004
|
2003
|
2002
|
2001
|
2002
|
2001
|
2000
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||
Current
assets
|
$
|
5,421,500
|
$
|
5,191,400
|
$
|
4,755,300
|
$
|
4,597,900
|
$
|
4,892,600
|
$
|
3,330,000
|
$
|
3,456,800
|
||||||||
Current
liabilities
|
6,058,000
|
1,909,700
|
2,044,400
|
2,563,800
|
1,406,400
|
2,396,700
|
6,617,900
|
|||||||||||||||
Working
capital deficit
|
(636,500
|
)
|
3,281,700
|
2,710,900
|
2,034,100
|
3,486,200
|
933,300
|
(3,161,100
|
)
|
|||||||||||||
Total
assets
|
30,703,700
|
23,929,700
|
28,190,600
|
30,991,700
|
30,537,900
|
30,465,200
|
30,876,100
|
|||||||||||||||
Long-term
obligations (1)
|
13,615,300
|
12,036,600
|
14,047,300
|
13,596,400
|
13,804,300
|
13,836,700
|
14,025,200
|
|||||||||||||||
Shareholders'
deficit
|
6,281,300
|
6,760,800
|
8,501,600
|
8,018,700
|
11,742,000
|
8,465,400
|
4,683,800
|
|||||||||||||||
(1)Includes
$7,384,700, of accrued reclamation costs on properties at December
31,
2004; $7,264,700 at December 31, 2003, and $8,906,800, at December
31,
2002, 2001 and May 31, 2001 and 2000, respectively. See Note K of
Notes to
Consolidated Financial Statements.
|
Year
Ended
|
Seven
Months Ended
|
|||||||||||||||||||||
|
December
31,
|
December
31,
|
For
Former Fiscal Years Ended May 31,
|
|||||||||||||||||||
2004
|
2003
|
2002
|
2001
|
2002
|
2001
|
2000
|
||||||||||||||||
|
(Unaudited) | |||||||||||||||||||||
Operating
revenues
|
$
|
4,641,700
|
$
|
837,300
|
$
|
673,000
|
$
|
545,900
|
$
|
2,004,100
|
$
|
3,263,000
|
$
|
3,303,900
|
||||||||
Loss
from
|
||||||||||||||||||||||
continuing
operations
|
(6,659,300
|
)
|
(7,237,900
|
)
|
(3,524,900
|
)
|
(3,914,900
|
)
|
(7,454,200
|
)
|
(7,517,800
|
)
|
(11,356,100
|
)
|
||||||||
Other
income & expenses
|
13,000
|
(73,000
|
)
|
(387,100
|
)
|
1,005,000
|
1,319,500
|
8,730,800
|
802,200
|
|||||||||||||
Loss
before minority interest, equity
|
||||||||||||||||||||||
in
loss of affiliates, income
|
||||||||||||||||||||||
taxes,
discontinued operations,
|
||||||||||||||||||||||
and
cumulative effect of
|
||||||||||||||||||||||
accounting
change
|
(6,646,300
|
)
|
(7,310,900
|
)
|
(3,912,000
|
)
|
(2,909,900
|
)
|
(6,134,700
|
)
|
1,213,000
|
(10,553,900
|
)
|
|||||||||
Minority
interest in loss
|
||||||||||||||||||||||
of
consolidated subsidiaries
|
397,700
|
235,100
|
54,800
|
24,500
|
39,500
|
220,100
|
509,300
|
|||||||||||||||
Equity
in loss of affiliates
|
--
|
--
|
--
|
--
|
--
|
--
|
(2,900
|
)
|
||||||||||||||
Income
taxes
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
|||||||||||||||
Discontinued
operations, net of tax
|
--
|
(349,900
|
)
|
17,100
|
175,000
|
(85,900
|
)
|
488,100
|
(594,300
|
)
|
||||||||||||
Cumulative
effect of
|
||||||||||||||||||||||
accounting
change
|
--
|
1,615,600
|
--
|
--
|
--
|
--
|
--
|
|||||||||||||||
Preferred
stock dividends
|
--
|
--
|
--
|
(75,000
|
)
|
(86,500
|
)
|
(150,000
|
)
|
(20,800
|
)
|
|||||||||||
Net
loss to common shareholders
|
$
|
(6,248,600
|
)
|
$
|
(5,810,100
|
)
|
$
|
(3,840,100
|
)
|
$
|
(2,785,400
|
)
|
$
|
(6,267,600
|
)
|
$
|
1,771,200
|
$
|
(10,662,600
|
)
|
Year
Ended
December
31,
|
Seven
Months Ended
December
31,
|
For
Former
Fiscal
Years Ended May 31,
|
||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||
2004
|
2003
|
2002
|
2001
|
2002
|
2001
|
2000
|
||||||||||||||||
Per
share financial data
|
||||||||||||||||||||||
Operating
revenues
|
$
|
0.35
|
$
|
0.07
|
$
|
0.06
|
$
|
0.07
|
$
|
0.22
|
$
|
0.42
|
$
|
0.43
|
||||||||
Loss
from
|
||||||||||||||||||||||
continuing
operations
|
(0.51
|
)
|
(0.64
|
)
|
(0.33
|
)
|
(0.47
|
)
|
(0.80
|
)
|
(0.96
|
)
|
(1.39
|
)
|
||||||||
Other
income & expense
|
0.00
|
(0.01
|
)
|
(0.03
|
)
|
0.12
|
0.14
|
1.11
|
0.01
|
|||||||||||||
Loss
before minority
|
||||||||||||||||||||||
interest,
equity in loss
|
||||||||||||||||||||||
of
affiliates, income taxes,
|
||||||||||||||||||||||
discontinued
operations,
|
||||||||||||||||||||||
and
cumulative effect of
|
||||||||||||||||||||||
accounting
change
|
(0.50
|
)
|
(0.65
|
)
|
(0.36
|
)
|
(0.35
|
)
|
(0.66
|
)
|
0.15
|
(1.38
|
)
|
|||||||||
Minority
interest in loss (income)
|
||||||||||||||||||||||
of
consolidated subsidiaries
|
0.03
|
0.02
|
--
|
--
|
0.01
|
0.03
|
0.07
|
|||||||||||||||
Equity
in loss of affiliates
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
|||||||||||||||
Income
taxes
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
|||||||||||||||
Discontinued
operations,
|
||||||||||||||||||||||
net
of tax
|
--
|
(0.03
|
)
|
--
|
0.02
|
(0.01
|
)
|
0.06
|
(0.08
|
)
|
||||||||||||
Cumulative
effect of
|
||||||||||||||||||||||
accounting
change
|
--
|
0.14
|
--
|
--
|
--
|
--
|
--
|
|||||||||||||||
Preferred
stock dividends
|
--
|
--
|
--
|
(0.01
|
)
|
(0.01
|
)
|
(0.01
|
)
|
--
|
||||||||||||
Net
(loss) income
|
||||||||||||||||||||||
per
share, basic
|
$
|
(0.47
|
)
|
$
|
(0.52
|
)
|
$
|
(0.36
|
)
|
$
|
(0.34
|
)
|
$
|
(0.67
|
)
|
$
|
0.23
|
$
|
(1.39
|
)
|
||
Net
(loss) income
|
||||||||||||||||||||||
per
share, diluted
|
$
|
(0.47
|
)
|
$
|
(0.52
|
)
|
$
|
(0.36
|
)
|
$
|
(0.34
|
)
|
$
|
(0.67
|
)
|
$
|
0.23
|
$
|
(1.39
|
)
|
June
30
|
December
31
|
||||||
2005
|
2004
|
||||||
(Unaudited)
|
(Audited)
|
||||||
Current
assets
|
$
|
11,474,600
|
$
|
5,421,500
|
|||
Current
liabilities
|
2,988,200
|
6,058,000
|
|||||
Working
capital (deficit)
|
8,486,400
|
(636.500
|
)
|
||||
Total
assets
|
41,868,800
|
30,703,700
|
|||||
Long
term obligations (1)
|
12,735,100
|
13,615,300
|
|||||
Shareholders
deficit
|
21,442,400
|
6,281,300
|
|||||
(1)
Includes $7,602,100 at June 30, 2005 and $7,882,400 at December
31, 2004
of accrued reclamation obligation costs on properties
|
|||||||
|
Six
Months Ended
|
||||||
|
June
30,
|
||||||
2005
|
|
|
2004
|
|
|||
|
(Unaudited)
|
(Unaudited)
|
|
||||
Operating
revenues
|
524,900
|
278,800
|
|||||
Loss
from
|