PEGASUS GOLD <PGULF> REDUCES DEBT
Pegasus Gold Inc said it
cut its long term debt to 85 mln dlrs from 100 mln dlrs when
its European bondholders voluntarily converted some of their
debt holdings into 1.5 mln shares of Pegasus common.
    The company said the debt converted represents about 40 pct
of the total 60 mln Swiss franc convertible debentures it
completed last Fall.
    In addition, Pegasus said it began mining and processing
operations at its Zortman/Landusky Mine one month ahead of
schedule.
    Pegasus said it completed the first phase of its 1987 Super
Pad ahead of schedule as well, allowing the mining company to
load up to 7.5 mln tons of new ore on the pad.
    Pegasus estimated that 1987 production at the
Zortman/Landusky mine will be about 80,000 ounces of gold and
225,000 ounces of silver.
 Reuter
