SHOTOVER QUARTZ MINING COMPANY. OTAGO GOLD DREDGING COMPANY.

Otago Witness, Issue 2722, 16 May 1906, Page 26

SHOTOVER QUARTZ MINING COMPANY.

OTAGO GOLD DREDGING COMPANY.

The following is the report of the directors of the Shotover Quartz Mining Company for the half-year ended April 14: —

" Your directors, in presenting the half* yearly ba.IMU"» *&**>*. ima rarjort, regret t©

state that it has been found impossible to resume operations at the mine owing to the financial state of the company. The debentures iaken up to the extent of £1500 were mainly taken up by the directors themselves ■and the 'creditors. During the past three monthß your board -has been endeavouring to formulate a scheme whereby operations could be resumed on a satisfactory basis, and to effect this has b&en in correspondence and consultation -with the directors of the Ophir Mining Company, of Dunedin, -wbos* property is situated in Mathinua, Tasmania. The Ophir Company ceased active operations some time ?go for satisfactory reasons, but still holds its property, and stated its willingness to divert its capital to the Shotover mine if the conditions should be favourable. After much discussion as io terms of amalgamation a scheme has bsen evolved which has been accepted by both boards, and is now set forth in the circular stating the objects of the extraordinary meeting of the company. Your directors wish to plainly lay -the position before the shareholders, and have to Btate that the only alternative at present to accepting this proposal is that the debenture-holders ■will obtain possession of the property and shareholders will receive nothirg. During the last month a portion of the mme — namely, the lease on the eastern side of the river — has been let on tribute for a term of two years, the tributers to pay the company 10 per cent, of all the gold won, and to drive and timber a level on tbe line of reef."

The balance sheet portion of the report states that the return of bullion for tbe six months ended April 14 was 340z 12dwt 3gr, oi a value of £127 17s lid. On April 11 there ■were sundry debtors totalling*,^*, while contingent qnarantee account was set down at £750. On the other hand, bundry creditors totalled £95, there was an overdraft at the bank to the amount of £652. while the debenture account stood at £1509.

In connection with the scheme for amalgamation referred to above. a circular has been issued stating that the object of the .amalgamation is "to secure the necessary capital to carry on the company, and thus pvoid the consequences of compulsory liquidation which is the -only alternative, the directors having ■endeavoured to raise the necessary capital to •effectively carry on iht> affairs of the company, but without success. Tie directors are satisfied that the proposed amalgamation would be advantageous to the company and the shareholders, but counsel lias advised that such amalgamation can only ba effected by putting this company into voluntarily liquidation, "with a view of carrying out the arrangement made between +he companies. The Ophir Company, with which th<> amalgamation is proposed, is a company which acquired s> mining property in Tasmania at a place called Methinna, and is the adjoining property to the Golden Gate mine, which has been working for many years and with preat success. The quartz icef in the Golden Gate mine is worked up to within about 300 ft of the "boundary of the Ophir claim, and is heacUr<* direct into the Ophir properly. They have at the present time lost the roof owing to a fau'* or dislocation in the reef; fcut this happened before, and, the reef was again discovered r.nd ■was found to cairy as good gold as ever. The G-olden Gate reef is 30ft wide, and has been opened up by a shaft to a depth of 1600 ft, and has paid over £340,000 »"n dividends in 17 years. The Ophir prot»»rtv was reported upon by Mr D. B. Waters. A.0.5.M., and on his Tecommenciation the Ophir Company started operations, but, as stated above, a fault occurred in the adjoining property and- therefore the Ophir Company has ceased work pending developments. It is, however, arTasged that only sufficient mosey is to ho expended on this properly to keep titles good and eventually it ia intended Jo realise should a.' favourable opportunity occur. The proposed sew company will have a capital of £14,000 divided into 14.400 shares of £1 each. T3ie 14,000 shares forming the capital of the mw -company -will be allocated thus: — The Shotover Quartz Mining Company (No Liability) will receive 5000 shares fully paid up to £1; the Ophir Mining Cornpary (Lid ) ■will receive 3000 shares fully paid xw to £1. The Ophir Mining Company (Ltd.) hn« already arranged for applications from subscribers. These names have been approved by the directors of the Shotover Ouartz 'Mining Company (No Liability) for 3000 contributing shares of £1 each. Such pubscribers ar*> to be entitled to a bonus in t>aid-up shares of £1 for each £1 of contributing capital paid to the new company, and may nay ut> tbe contributing shares in full at any time if tbey so desire; but they Teserve to themselves the light to pay the whole of the con tribu tins 1 chares in full at any time, and to be entitled to the bonus shares — that is. 3000 shares fully paid up to £1. The 5000 fully paid-up share 3 of £1 each will be allotted to the shareholders and. debenture-holders as follows • — Deben-ture-holders will receive 3000 shares for the £1500 of debentures heia by tbem ; the preference shareholders 830 shares, in the proportion of one share to every six paid-uD shares of 5s each held by them, and the ordinary shareholders 1170 shares, being in "the proportion of one share for every 20.51 paid-up shares he'd by them.

The following report for the year ended April SO' will be presented to shareholders in the Otago Gold Dredging Company at the eleventh annual general meeting; —

" The results continue to be satisfactory, the «(«t profit for the year snynmting to £4923 2s. tb which has to be added the balance carried from last year, £513 13s 4d. or in all £5435 15s 4d. This has been disposed of as follows: — To payment of dividends, £3575 ; to appropriation for plant and property, £1172 3s; to balance carried forward, £389 12s 4d : — total, £5436 15s 4d "With the exception of the time lost, when erecting the new elevator on the Kb. 2 dredge, both dredges have been working 6teadily throughout the year. It was no

longer possible io work the ground satisfactorily with the smalleT elevator. The prospects for the coming year are favourable. Your directors have sold that portion of the company's No. 1 claim, above the bridge, to the Golden Treasure Company, the term 3 being £250 cash and 7J per cent, of the gold -won, after allowing for working expenses. The settlement is not included in this year's statement."

Tho return of the gold output for last year was £11.086, to which the No. I dredge contributed £3622, and the No. 2 £7464. On April 30 there was cash at the bank to the amount of £233, debentures in hand equivalent to £510, and a deposit aiiU cash iv hand to the amount of £12 15s, making a total of £755 16s. Sundry creditors totalled £366.