10-Q 1 qjun2001.txt FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2001 ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ----------- ------------ Commission File Number 0-1764 AMERICAN NUCLEAR CORPORATION (Exact Name of Registrant as Specified In Its Charter) Colorado 83-0178547 ------------------------------ -------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) P. O. Box 2713 Casper, Wyoming 82602 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (307) 265-7912 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 (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X. No . Indicate the number of share outstanding of each of the issuer's classes of common stock, as of the close of the period covered by this report. 4 cents par value common stock: 7,696,739 shares

~~UNITED~~PAGE ~~STATES~~2 AMERICAN NUCLEAR CORPORATION STATEMENTS OF OPERATION FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2001 AND JUNE 30, 2000 (UNAUDITED) Three Months Ended Six Months Ended June 30 June 30 2001 2000 2001 2000 ------ ----- ---- ---- NET LOSS BEFORE DISCONTINUED OPERATIONS $ -0- $ -0- $ -0- $ -0- REVENUE FROM DISCONTINUED OPERATIONS Reclamation Reimbursement 13,519 30,998 13,519 30,998 ---------- ---------- ---------- ---------- Total revenue from discontinued operations 13,519 30,998 13,519 30,998 DISCONTINUED EXPENSES General and administrative 5,253 12,742 12,228 22,918 Reclamation expense -0- 25,441 -0- 33,970 Interest income (527) (309) (1,012) (615) ---------- ---------- ---------- ---------- Total discontinued expenses 6,448 37,874 11,216 56,273 NET INCOME (LOSS) $ (6,448) $ (6,876) 2,303 (25,275) PER SHARE: NET PROFIT (LOSS) BEFORE DISCONTINUED OPERATIONS PER SHARE $ 0.00 $ 0.00 $ 0.00 $ 0.00 DISCONTINUED OPERATIONS PER SHARE NET PROFIT (LOSS) $ 0.00 $ 0.00 $ 0.00 $ 0.00 WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING 7,696,739 7,696,739 7,696,739 7,696,739 DIVIDENDS PER SHARE $ 0.00 $ 0.00 $ 0.00 $ 0.00

PAGE 3

~~SECURITIES~~AMERICAN NUCLEAR CORPORATION BALANCE SHEETS JUNE 30, 2001 AND ~~EXCHANGE~~DECEMBER ~~COMMISSION~~31, 2000 June 30, Dec. 31, 2001 2000 (Unaudited) (Unaudited) ----------- ----------- ASSETS Current assets: Cash $ 87,740 $ 37,472 ----------- ------------ Total current assets $ 87,740 $ 37,472 Other assets: Other 8,000 45,587 ----------- ------------ Total other assets 8,000 45,587 Total assets $ 95,740 $ 83,059 =========== ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Trade accounts payable -0- -0- Other current liabilities -0- -0- ----------- ------------ Total current liabilities -0- -0- Common Stockholders' equity: Common stock 314,080 314,080 Additional paid-in capital 13,304,849 13,304,849 Retained earnings (12,894,062) (12,906,744) Less cost of treasury stock (629,126) (629,126) ----------- ------------ Common stockholders' equity 95,740 83,059 Total liabilities and stockholders' equity $ 95,740 $ 83,059 =========== ============

PAGE 4

~~Washington~~AMERICAN NUCLEAR CORPORATION STATEMENTS OF CASH FLOW FOR THE SIX MONTHS ENDED JUNE 30, ~~D.C. 20549~~ 2001 AND 2000 (UNAUDITED) Six Months Ended June 30 2001 2000 ---------- ----------- Cash flows from discontinued operations: Net loss $ (2,302) $ (25,275) Adjustments to reconcile net loss to net cash used by operating activities: (Increase) Decrease in other assets (8,000) 25,464 ----------- ----------- Total adjustments (8,000) 25,464 ----------- ----------- Net cash used in operating activities (5,698) 189 Net increase (decrease) in cash during the period (5,698) 189 Cash at the beginning of the period 93,438 46,457 Cash at the end of the period $ 87,740 $ 46,646 =========== ===========

PAGE 5 AMERICAN NUCLEAR CORPORATION NOTES TO FINANCIAL STATEMENTS FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2001 AND 2000 (UNAUDITED) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation Liquidation Basis The accompanying financial statements have been prepared on a liquidation basis, which recognized the realization of assets and the satisfaction of a portion of the liabilities. The Company's current assets exceeded its current liabilities by $87,740 and $93,437 at June 30, 2001 and December 31, 2000 respectively. During 1994 the Company discontinued operations due to lack of operating capital. For financial reporting purposes, the Company has offset contractual liabilities totaling $392,000. These liabilities were recognized as income because the Company has no means of repaying the obligations under liquidation basis accounting. The remaining Company cash deposits are being utilized to maintain compliance as long as possible with U.S. Nuclear Regulatory Commission (NRC) license requirements pertaining to the Company's uranium mining reclamation site. The Company discontinued the licensing requirements by transferring this responsibility to the Wyoming DEQ. The state of Wyoming declared the Company in default of its reclamation obligations when the Company terminated its business operations in May 1994. Subsequently the reclamation bond fund of $3,213,255 was acquired by the Wyoming DEQ through forfeiture proceedings. The state of Wyoming has consented to perform certain reclamation obligations, but has declined to assume the NRC license and the associated obligations. The reclamation requirements have changed to require more work since the bond forfeiture, and the cash requirements to continue reclamation have increased by an undetermined amount. There is the potential of a cost overrun in the range of $3 million or considerably more. The Company has not recognized a contingent liability for this amount because the Wyoming DEQ and NRC have not agreed upon a final reclamation plan upon which to base a cost estimate. By state of Wyoming statute, the Company is liable for any cost overruns. The Company remains liable for completion of its reclamation obligations even though it does not have enough assets with which to complete those obligations. The NRC has served the Company with notice PAGE 6 that the Company's deliberate abandonment of its reclamation site would constitute an intentional violation of the Atomic Energy Act of 1954 and could subject the Company to NRC enforcement actions and criminal sanctions. The Company is complying with a NRC order to maintain and comply with the terms of its NRC license. Further, the Company has an agreement with the Wyoming DEQ to maintain its corporate existence in order to receive Title X reclamation reimbursement funds from the U.S. Department of Energy and transfer agreed upon amounts to the Wyoming DEQ. The Company has no intention of entering into other businesses or continuing its limited operations beyond the time when it has fulfilled its obligations under the NRC license and those required by the state of Wyoming. Interim Financial Statements The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The accompanying statements should be read in conjunction with the unaudited financial statements included in the Company's Report on Form 10-K for the year ended December 31, 2000. In the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. Per Share Amounts Earnings per share calculations are computed on the weighted average number of common shares outstanding during the respective periods. Shares under option and warrants have been disregarded because their effect is anti-dilutive. Discontinuance of Operations Management began seeking a purchaser for its mining properties in the third quarter of 1993. While potential purchasers continued to express interest, the Company did not receive any offer greater than the amount of the debt that was secured by the mortgage against the properties. Inability to sell the mining properties, depletion of capital and lack of revenues deprived the Company of operating capital. The Company determined to discontinue operations during May 1994 and to liquidate its miscellaneous property and to pay and discharge its current liabilities and other expenses associated with an orderly closing of business operations. PAGE 7 Marketability of Common Stock Effective May 9, 1994 the Company's common stock was removed from listing on the NASDAQ SmallCap Market. There are no trading markets for the Company's common stock. Salt Ridge Energy, Inc., a corporation owned by Mr. Salisbury, President, acquired 2,893,072 shares of common stock during June 1998 and now owns 37.6% of the Company's outstanding stock. The Company is aware of occasional trades on the electronic bulletin board. the basis of these transactions is unknown. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Results of Operations The Company discontinued operations during May 1994. The Company had no operating revenues during the period subject to this report or the earlier comparable period. See the "Discontinuance of Operations" and the "Liquidity and Capital Resources" sections in this report regarding additional information about the Company's cessation of operations. General and administrative expenses were $12,228 and $5,253 for the six and three months ended June 30, 2001 compared to $22,918 and $12,742 for the comparable periods ended June 30, 2000. Reclamation expenses were zero for the six and three months ended June 30, 2001 and $33,970 and $25,441 for the comparable 2000 periods. The Company discontinued the monitoring on January 1, 2001. There was $1,012 interest income for the first half of 2001, compared to $615 for the comparable period ending June 30, 2000. The interest is due to the reimbursement of DOE funds to the Company. These funds will be used for ongoing expenses as long as possible. A net income of $2,303 was recognized during the first six months of 2001 compared to a loss of $25,275 for the same period in 2000. The losses are expected to remain in the range of $7,000 per quarter as long as the Company continues ongoing operations. Liquidity and Capital Resources The Company's working capital at June 30, 2001, was $87,740 while at December 31, 2000 it was $93,437. The decrease in working capital at June 30, 2001 was due to the Company's ongoing general and administrative expenses. During May 1994, the Company discontinued operations because of its lack of funds. Before that decision was made, the Company attempted to obtain additional loans, raise equity funds through a private placement of its common stock, secure byproduct disposal contracts, or sell its mineral properties. None of these PAGE 8 efforts were successful. In addition, the Wyoming Department of Environmental Quality (DEQ) declared forfeiture of the $3.2 million reclamation bond fund to the DEQ to be used by the DEQ for completing reclamation of the Company's Gas Hills mill site. The total cost of the reclamation work will not be known for many years, and the funds held by the DEQ are not expected to cover all the expenses. The Company remains the licensee and owner of the reclamation site, and the Company will not be released from the obligations of reclamation that are imposed by the license until reclamation work is completed and accepted by the regulatory agencies. The Company has applied, under the federal program administered by the DOE, for reimbursement of some of the reclamation work it has previously performed to clean up its mining and milling site. The DOE program has been funded by Congress and money has been allocated for the reimbursements. The Company received approximately $46,000 from this program during 1999 and approximately $107,000 during 2000 and $13,000 during 2001. Under the prevailing law and the terms of the order of the U.S. Nuclear Regulatory Commission that directs the Company to continue to reclaim and monitor its reclamation site, the funds and any future funds that could be received under this program will be applied to ongoing monitoring and reclamation obligations over the next several years, including payments to the Company's independent contractors to perform such services. None of the money will be applied to claims of creditors, and no funds will be available for distribution to shareholders because the reclamation obligations are projected to substantially exceed the funds that become available. The DEQ has entered into an agreement with the Company providing that the state will not bring a deficiency action in court if the Company transfers Title X funds to the state to be applied to the deficiency for use by the state to perform reclamation. The Tennessee Valley Authority (TVA), which had asserted a right to the funds based on its 1984 contract with the Company, released the Company from such claims due to an agreement between TVA and the state. The agreement between the Company and DEQ provides that the Company and DEQ will use the DOE Title X funds toward monitoring and reclamation of the mill site in accordance with the NRC license. PAGE 9 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on their behalf by the undersigned thereunto being authorized. AMERICAN NUCLEAR CORPORATION Registrant (signature) August 15, 2001 By: ----------------------------------- William C. Salisbury President (signature) August 15, 2001 By: ----------------------------------- Dennis A. Eckerdt Secretary and Treasurer

FORM 10-Q

(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2001

( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

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

Commission File Number 0-1764

AMERICAN NUCLEAR CORPORATION

(Exact Name of Registrant as Specified In Its Charter)

Colorado 83-0178547

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

(State or other jurisdiction of (I.R.S. Employer

incorporation or organization) Identification No.)

P. O. Box 2713

Casper, Wyoming 82602

(Address of principal executive offices)

(Zip Code)

Registrant's telephone number, including area code: (307) 265-7912

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 (or for such

shorter period that the registrant was required to file such reports),

and (2) has been subject to such filing requirements for the past 90

days. Yes X. No .

Indicate the number of share outstanding of each of the issuer's

classes of common stock, as of the close of the period covered by this

report.

4 cents par value common stock: 7,696,739 shares

<PAGE>

<TABLE>

<CAPTION> PAGE 2

AMERICAN NUCLEAR CORPORATION

STATEMENTS OF OPERATION

FOR THE THREE MONTHS ENDED

MARCH 31, 2001 AND MARCH 31, 2000

(UNAUDITED)

Three Months Ended

March 31

2001 2000

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

NET LOSS BEFORE DISCONTINUED

OPERATIONS $ -0- $ -0-

REVENUE FROM DISCONTINUED

OPERATIONS

Reclamation Reimbursement -0- -0-

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

Total revenue from

discontinued operations -0- -0-

DISCONTINUED EXPENSES

General and administrative 6,975 10,176

Reclamation expense -0- 8,529

Interest income <527> <306>

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

Total discontinued expenses 6,448 18,399

NET INCOME (LOSS) $ <6,448> $ <18,399>

PER SHARE:

NET PROFIT (LOSS) BEFORE

DISCONTINUED OPERATIONS PER

SHARE $ 0.00 $ 0.00

DISCONTINUED OPERATIONS PER

SHARE NET PROFIT (LOSS) $ 0.00 $ 0.00

WEIGHTED AVERAGE NUMBER OF

SHARES OUTSTANDING 7,696,739 7,696,739

DIVIDENDS PER SHARE $ 0.00 $ 0.00

</TABLE>

<PAGE>

PAGE 3

<TABLE>

AMERICAN NUCLEAR CORPORATION

BALANCE SHEETS

March 31, 2001 and December 31, 2000

March 31, Dec. 31,

2001 2000

(Unaudited) (Unaudited)

-------------- ------------ <S> <C> <C>

ASSETS

Current assets:

Cash $ 74,990 $ 37,472

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

Total current assets $ 74,990 $ 37,472

Other assets:

Other 12,000 45,587

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

Total other assets 12,000 45,587

Total assets $ 86,990 $ 83,059

=========== ============

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Trade accounts payable -0- -0-

Other current liabilities -0- -0-

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

Total current liabilities -0- -0-

Common Stockholders' equity:

Common stock 314,080 314,080

Additional paid-in capital 13,304,849 13,304,849

Retained earnings <12,902,813> <12,906,744>

Less cost of treasury stock <629,126> <629,126>

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

Common stockholders' equity 83,059 83,059

Total liabilities and stockholders'

equity $ 86,990 $ 83,059

=========== ============

</TABLE>

<PAGE>

PAGE 4

<TABLE>

AMERICAN NUCLEAR CORPORATION

STATEMENTS OF CASH FLOW

FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000

(UNAUDITED)

Three Months Ended

March 31

2001 2000

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

Cash flows from discontinued operations:

Net loss $ <6,448> $ <18,399>

Adjustments to reconcile net loss to net

cash used by operating activities:

(Increase) Decrease in other assets <12,000> 9,414

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

Total adjustments <12,000> 9,414

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

Net cash used in operating activities <18,448> 8,985

Net increase (decrease) in cash during the

period <18,448> <8,985>

Cash at the beginning of the period 93,438 46,457

Cash at the end of the period $ 74,990 $ 37,472

=========== ===========

</TABLE>

<PAGE>

PAGE 5

AMERICAN NUCLEAR CORPORATION

NOTES TO FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED

MARCH 31, 2001 AND 2000

(UNAUDITED)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Liquidation Basis

The accompanying financial statements have been prepared on a

liquidation basis, which recognized the realization of assets and the

satisfaction of a portion of the liabilities. The Company's current

assets exceeded its current liabilities by $74,990 and $93,437 at

March 31, 2001 and December 31, 2000 respectively. During 1994 the

Company discontinued operations due to lack of operating capital. For

financial reporting purposes, the Company has offset contractual

liabilities totaling $392,000. These liabilities were recognized as

income because the Company has no means of repaying the obligations

under liquidation basis accounting. The remaining Company cash

deposits are being utilized to maintain compliance as long as possible

with U.S. Nuclear Regulatory Commission (NRC) license requirements

pertaining to the Company's uranium mining reclamation site. The

Company discontinued the licensing requirements by transferring this responsibility to the Wyoming DEQ.

The state of Wyoming declared the Company in default of its

reclamation obligations when the Company terminated its business

operations in May 1994. Subsequently the reclamation bond fund of

$3,213,255 was acquired by the Wyoming DEQ through forfeiture

proceedings. The state of Wyoming has consented to perform certain

reclamation obligations, but has declined to assume the NRC license and

the associated obligations. The reclamation requirements have changed

to require more work since the bond forfeiture, and the cash

requirements to continue reclamation have increased by an undetermined

amount. There is the potential of a cost overrun in the range of $3

million or considerably more. The Company has not recognized a

contingent liability for this amount because the Wyoming DEQ and NRC

have not agreed upon a final reclamation plan upon which to base a cost

estimate. By state of Wyoming statute, the Company is liable for any

cost overruns.

The Company remains liable for completion of its reclamation

obligations even though it does not have enough assets with which to

complete those obligations. The NRC has served the Company with notice

<PAGE>

PAGE 6

that the Company's deliberate abandonment of its reclamation site would

constitute an intentional violation of the Atomic Energy Act of 1954

and could subject the Company to NRC enforcement actions and criminal

sanctions. The Company is complying with a NRC order to maintain and

comply with the terms of its NRC license. Further, the Company has an

agreement with the Wyoming DEQ to maintain its corporate existence in

order to receive Title X reclamation reimbursement funds from the U.S.

Department of Energy and transfer agreed upon amounts to the Wyoming

DEQ. The Company has no intention of entering into other businesses or

continuing its limited operations beyond the time when it has fulfilled

its obligations under the NRC license and those required by the state of

Wyoming.

Interim Financial Statements

The accompanying unaudited consolidated financial statements have

been prepared in accordance with generally accepted accounting

principles for interim financial information and with the instructions

for Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do

not include all of the information and footnotes required by generally

accepted accounting principles for complete financial statements. The

accompanying statements should be read in conjunction with the

unaudited financial statements included in the Company's Report on Form

10-K for the year ended December 31, 2000. In the opinion of

management, all adjustments (consisting only of normal recurring

accruals) considered necessary for a fair presentation have been

included.

Per Share Amounts

Earnings per share calculations are computed on the weighted

average number of common shares outstanding during the respective

periods. Shares under option and warrants have been disregarded

because their effect is anti-dilutive.

Discontinuance of Operations

Management began seeking a purchaser for its mining properties in

the third quarter of 1993. While potential purchasers continued to

express interest, the Company did not receive any offer greater than

the amount of the debt that was secured by the mortgage against the

properties. Inability to sell the mining properties, depletion of

capital and lack of revenues deprived the Company of operating capital.

The Company determined to discontinue operations during May 1994 and to

liquidate its miscellaneous property and to pay and discharge its

current liabilities and other expenses associated with an orderly

closing of business operations.

<PAGE>

PAGE 7

Marketability of Common Stock

Effective May 9, 1994 the Company's common stock was removed from

listing on the NASDAQ SmallCap Market. There are no trading markets

for the Company's common stock. Salt Ridge Energy, Inc., a corporation

owned by Mr. Salisbury, President, acquired 2,893,072 shares of common

stock during June 1998 and now owns 37.6% of the Company's

outstanding stock. The Company is aware of occasional trades on the

electronic bulletin board. the basis of these transactions is unknown.

MANAGEMENTS DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Results of Operations

The Company discontinued operations during May 1994. The Company had no operating revenues during the period subject to this report or the earlier comparable period. See the "Discontinuance of Operations"

and the "Liquidity and Capital Resources" sections in this report

regarding additional information about the Company's cessation of

operations.

General and administrative expenses were $6,975 for the three

months ended March 31, 2001 compared to $10,176 for the comparable period ended March 31, 2000.

Reclamation expenses were zero for the three months ended March 31, 2001 and $8,529 for the comparable 2000 period. The Company discontinued the monitoring on January 1, 2001.

There was $527 interest income for the first quarter of 2001, compared to $306 for the comparable period ending March 31, 2000. The interest is due to the reimbursement of DOE funds to the Company.

These funds will be used for ongoing expenses as long as possible.

A net loss of $6,448 was recognized during the first three months of 2001 compared to a loss of $18,399 for the same period in 2000. The losses are expected to remain in the range of $7,000 per quarter as long as the Company continues ongoing operations.

Liquidity and Capital Resources

The Company's working capital at March 31, 2001, was $74,990

while at December 31, 2000 it was $93,437. The decrease in working

capital at March 31, 2001 was due to the Company's ongoing general and

administrative expenses. During May 1994, the Company discontinued operations because of its lack of funds. Before that decision was made,

<PAGE>

PAGE 8

the Company attempted to obtain additional loans, raise equity funds

through a private placement of its common stock, secure byproduct

disposal contracts, or sell its mineral properties. None of these

efforts were successful. In addition, the Wyoming Department of

Environmental Quality (DEQ) declared forfeiture of the $3.2 million

reclamation bond fund to the DEQ to be used by the DEQ for completing

reclamation of the Company's Gas Hills mill site. The total cost of

the reclamation work will not be known for many years, and the funds

held by the DEQ are not expected to cover all the expenses. The

Company remains the licensee and owner of the reclamation site, and

the Company will not be released from the obligations of reclamation

that are imposed by the license until reclamation work is completed and

accepted by the regulatory agencies. The Company has applied, under

the federal program administered by the DOE, for reimbursement of some

of the reclamation work it has previously performed to clean up its

mining and milling site. The DOE program has been funded by Congress

and money has been allocated for the reimbursements. The Company

received approximately $46,000 from this program during 1999 and

approximately $107,000 during 2000. If Congress continues funding this

Title X program, of which there is no assurance, the Company may receive

additional DOE reimbursements during 2001. Under the prevailing law

and the terms of the order of the U.S. Nuclear Regulatory Commission

that directs the Company to continue to reclaim and monitor its

reclamation site, the funds and any future funds that could be received

under this program will be applied to ongoing monitoring and

reclamation obligations over the next several years, including payments

to the Company's independent contractors to perform such services.

None of the money will be applied to claims of creditors, and no funds

will be available for distribution to shareholders because the

reclamation obligations are projected to substantially exceed the funds

that become available. The DEQ has entered into an agreement with the

Company providing that the state will not bring a deficiency action in

court if the Company transfers Title X funds to the state to be applied

to the deficiency for use by the state to perform reclamation. The

Tennessee Valley Authority (TVA), which had asserted a right to the

funds based on its 1984 contract with the Company, released the Company

from such claims due to an agreement between TVA and the state. The

agreement between the Company and DEQ provides that the Company and DEQ

will use the DOE Title X funds toward monitoring and reclamation of the

mill site in accordance with the NRC license.

<PAGE>

PAGE 9

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934,

the registrant has duly caused this report to be signed on their behalf

by the undersigned thereunto being authorized.

AMERICAN NUCLEAR CORPORATION

Registrant

(signature)

May 15, 2000 By: -----------------------------------

William C. Salisbury

President

(signature)

May 12, 2000 By: -----------------------------------

Dennis A. Eckerdt

Secretary and Treasurer

Filing Compare · AMERICAN NUCLEAR CORP