SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) January 21, 1998
Commerce Group Corp.
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(Exact name of registrant as specified in its charter)
Delaware 1-7375 39-605862
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(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification No.)
incorporation)
6001 North 91st Street, Milwaukee, Wisconsin 53225-1795
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (414) 462-5310
fax: (414) 462-5312
Item 5. Other Events Material Disclosure
The following news release was issued on January 21, 1998:
News Release
Commerce Group Corp.
Shareholder Enhancement Announcement
Milwaukee, Wisconsin, U.S.A. - Commerce Group Corp. has employed Fortress
Financial Group, Limited, an investment banking and brokerage firm
located in the Isle of Palms, South Carolina, to advise and counsel it on
procedures and techniques to increase Commerce's shareholder value
including, but not limited to, an acquisition or a merger. "While the
company has not made any specific decision to pursue any particular
transaction, we believe that it is prudent to consider the various
approaches to increase shareholder value," Chief Executive Edward L.
Machulak said in a statement.
Commerce is primarily engaged in the business of developing mines and
producing gold in the Republic of El Salvador, Central America where it
has almost 30 years of experience.
Commerce's geologists are in the process of analyzing the current diamond
core and reverse circulation drilling performed at the San Sebastian Gold
Mine to determine the additional gold ore reserve potential. In the past
they have revealed that there are approximately 1.6 million ounces of
proven and probable gold ore reserves. Based on a current price of gold,
the gross value amounts to approximately $448 million, equivalent to
$40.00 a share.
Recent low gold prices have encouraged a consolidation in the precious
metals industry and management believes that Commerce is an attractive
acquisition target.
Teck Corp., a major Canadian mining company with worldwide mining
interests, continues to communicate with Commerce's geologists relative
to their involvement in the San Sebastian Gold Mine. Several other gold
mining companies are also interested in the prospects of the San
Sebastian Gold Mine.
For additional information contact:
Commerce Group Corp. Mr. Ron Wheet
Mr. Edward L. Machulak Managing Partner
President Fortress Financial Group, Limited
1204 Palm Boulevard
Isle of Palms, S.C. 29541
(800) 304-3181
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
COMMERCE GROUP CORP.
(Registrant)
Date: January 21, 1998 /s/ Edward L. Machulak
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By: Edward L. Machulak, President