MINING NOTES FROM LONDON.

Auckland Star, Volume XXIX, Issue 228, 27 September 1898, Page 5

MINING NOTES FROM LONDON.

(From Our London Correspondent.)

LONDON, August 27. THE KAURI FREEHOLD ESTATES,

ANOTHER RECONSTRUCTION.

Reconstructions are the order of the ; day in mining concerns at present. On Tuesday Mr Hamilton Carvill had the pleasure of submitting resolutions for the voluntary reconstruction of the Kauri Freehofd Gold Estates Company, a course rendered necessary ac- j cording to the chairman because the great British public had lost its dis- i crimination and condemned good and | | bad mines alike. Thus the mines j ! which the Kauri Company intended to ! develop and float off on the London I market as separate concerns are left i i upon their hands, and hence the ne- [ cessity for finding more working capi- | tal. This the directors propose to do by giving the shareholders in the existing company a right to claim one j £ 1 share in the reconstructed con- ! cern, credited with 15/ paid in respect | of every one pound share in the pre- i sent company, 1/ per share of the remaining 5/ being payable on applica- ' tion, and 1/ on allotment. This scheme will, it is hoped, give the company enough money to reduce their promising mines to payable propositions. Mr Carvill's speech was modest as to length and sanguine in character. He expressed his profound sorrow at having to make so disagreeable a proposition to the shareholders, but they had certain circumstances to face, and it was their duty to face them, boldly. The directors unhesitatingly recommended the adoption of the course outlined in the resolutions. They had absolute confidence in the company's property, and had no reasons whatever to recede from the most sanguine statements that had ever been made with regard to the Estate by any of the people connected with its management. .Regarding the results obtained from the expenditure of the company's working capital up to date, Mr Carvill said that in the first place they had well opened up four mines— the Maiden, Lanigan's, the Hilda, and the Carvill. They had supplied machinery for three shafts; that machinery was now in operation, and the shafts were being sunk not only rapidly but with very promising results. They had a battery capable of treating 3000 tons per month in course of erection on the ground, and itwould be in operation by the end of March. They had the authority of Mr Montgomery for stating that the four mines opened up without dealing with any of their outlying property were sufficient to supply payable ore for the continuous working of the battery, which Mr Montgomery said would produce from the end of March next an annual profit of £50,000. Now, whether the reconstruction scheme was accepted or not must depend firstly upon the amount of confidence the shareholders placed in Mr Montgomery and in the other, people who represented the company in New Zeaj land, aud secondly tipon the bona fides of the Board. Now, he might anticipate some little criticism with regard to the directors by saying that there were seven of them, and they were paid £2000 a year— £500 to himself as chairman, and £250 for each of the other six directors. It might be that the shareholders could get directors who wotild accept considerably less than that, bur he doubted if they would get directors who would attend more closer-- to the business than did he and his colleagues. Dealing further with the property, the chairman' referred to the very valuable timber forest acquired while he was in New Zealand. That forest was in the neighbourhood of the mines, and was a necessity not only for the building up of the township for the buiuding up of the township which they had laid out. They acquired the forest for £0000, but.it could not. now be replaced to them for £25,000. The next point was as to the railway. To make the mines accessible and for their economical working the railway was necessary. The cost, about £9000, was no doubt a large item in connection with the development of a mine, but he had no hesitation in saying it was true economy. At least half of the expenditure' was absolutely indispensable,and although had they been a povertystricken company they might have had £4000 or*£4soo in the bank instead of having an extension of the railway from the battery to the company's wharf in Whangapoua. Harbour, he contended that the railway was more valuable to them than the money would be. The railway would effect a saving in the construction of the battery alone of £1000. and it had already effected a saving of several hundred* pounds in bringing materials to the mine; then ,in addition, there would be a private traffic over the railway from Opitonui township. With regard* to the mines, they were improving in depth, and that was. very important, for it might be accepted as strong evidence that as they went deeper they would not be disappointed. Mr L.'Welstead, in seconding- the resolutions, emphasised the remarks of the chairman as to the advantage which the company would derive from the possession of the forest, and with regard to the battery said that Mr Montgomery was confident that when he started" crushing at the end of March next he would have sufficient ore at his disposal to make- continuous returns. He did not anticipate any difficulty -with regard to treatment. Taking the cost of mining and treatment at the high figure of 30/ a ton, there would still be a good profit. Mr Montgomery said that the programme of operations which he had sketched out would necessitate a monthly expenditure in mining work alone of £2000, and that, of course, was why the present scheme was necessary. After the solicitor had explained that the scheme would provide about £62,000 further capital, or £44,250 after the return of the amount payable in existing debentures, viz., £ 18,250, the resolutions were put and carried en bloc without dissent. The usual vote to the chairman and directors ended the meeting.

WAIHI CONSOLIDATED,

On Wednesday the shareholders of the Waihi Consolidated met together to consider resolutions for winding up and reconstructing their company.

General Henderson, the chairman of the company, explained that the Board felt that to abandon the company at the present time when they might be on the very verge of success, would be a'very unwise policy. Their funds however, being- exhausted, they had to either liquidate or reconstruct, and the Board strongly advocated reconstruction. The proposed scheme of reconstruction provided that a new company should be with the title

of the Waihi Consolidated Gold Mines, with a capital of £200,000. divided into 200,000 shares of £1 eac*B, for which 25,000 were to be held in reserve with objects including those of the present company, and the acquisition and taking over the whole of the property, assets and liabilities of the existing new company, the memorandum and articles of association of the new company to be subject to the approval of the liquidator, the liquidator to transfer to the new company the property, and undertaking of the old company, the new company to take over the debts and liabilities of the old company, and to defray the expenses of and incident to the winding up of the old company and carrying out this scheme, the new company to allot and issue to the members of the old company who may claim the same one £ 1 share, with 19/ credited as paid up thereon in the new company for every £ 1 share held in the old company, the remaining 1/ per share to be payable as follows: 3d per share on application, 3d per share on allotment, and the balance as and when required by the directors at intervals of not less than one month each. A long discussion followed, and eventually with tlie approval of the Board it was decided that Messrs Walker, Heath, Pritchard, and Weir be appointed a committee, with power to inspect all books and documents and to consult with the Board as to the position of the company, and that the meeting should stand adjourned to receive the committee's report.

THE WAITEKAURI CONSOLI- \ DATED.

On Friday last the shareholders in another consolidated concern — the Waitekauri, to wit, held a solemn conclave to confirm the resolutions passed on 29th July last for the voluntary winding up and reconstruction of the company, with a view to working in Victoria where the directors have made arrangements to buy the 'New Hillsborough Goldmining Company's property' for £2000 in cash and 77,000 fully paid £2 shares.

The proposed capital of the new concern is £120,000 in £1 shares, and on the terms of the reconstruction scheme the Waitekauri Consolidated shareholders are entitled to apply for 28,000 of these shares credited with 15/ paid ,the balance being payable as follows: 6d on application, 6d on allotment, and 6d a month till the shares are paid up. The Waitekauri Consolidated people have agreed to find £5000 in cash for working capital and 15,000 shares are to be held in reserve for future issue if required. The Hillsborough mine is represented to be a thoroughly proved and payable proposition, over 12,000 (yielding 10,648 ounces) tons of ore having been extracted from the property by the original company, which is. now 'hung iip for want of cash to carry out the necessary developments.

THE WAITEKAURI CROSS,

On Thursday last Mr J. W. Broomhead presided over a very attenuated meeting of Waitekauri Cross shareholders at the Company's offices in Coleman-street, a natural result of holding the meeting in the height of* the holiday season. The Chairman, in movingl the adoption of the report and accounts, opened with a brief reference to the water rights of th,e Company and to the unfortunate fire' at Auckland by which a large portion of the electrical equipment intended for the mine was destroyed. He assured the shareholders that the loss by the fire was fully covered by insurance; that a direct current plant of sufficient strength to meet pumping, hauling, lighting and crushing was now in course of erection. As to the water rights, though an adjoining company had taken steps to contest them, they need have no fear of the result. Mr Broomhead then read a lengthj- and most satisfactory letter from the mine manager in support of the theory that the Taranaki reef upon which the success of the Waitekauri Cross largely depended, and the Golden Cross reef, from which the Waitekauri Company is obtaining such good ore, are one and the same. The mine manager's ideas on this point coincide with the views of Mr Sulman, the eminent gold chemist, his chemical analysis of ore from both reefs showing no difference between them. The little audience appreciated Mr Broomhead's successful endeavours to identify the Taranaki as the Golden Cross, for if Mr T. James and Mr Sulman be right their property is distinctly improved in prospective value. As, according to Mr Broomhead, other companies have been proposing amalgamation or endeavouring to acquire an interest in the 'Cross' the knowledge of the reef's identity is not confined to one or two experts. Speaking as to the policy of the Company the Chairman said: 'If the developments continued to improve as they had done lately they ought to" be able-to provide machinery for a small plant with the finances at the-" Company's disposal. They had, in the last year, spent £3,500 on wages, and another £1,000 on stores, plant, timber, etc. They were doing a very large amount of cross-cutting and sinking, and, of course, the main expenditure had been in development work. Were they to get in their big lode'a quick improvement, there was no doubt they would be able to put up a small mill.' Answering further questions the Chairman said he thought the ore was non-refractory, and that they would be able to extract 90 per cent, of the gold on that basis, an assay of 30/ per ton. ought to cover expenses. Practical miners who had gone over the property had spoken extremely well of it. With regard to capital the Chairman said it was not in contemplation to make any further call at present. The motion was adopted nem con and the visual vote of thanks brought the proceedings to a close.

On Friday evening, 23rd insfc., the children and settlers of the Tuakaa district assembled in the Schoolroom to bid farewell to Mr F. Warren, who has Leen promoted to the headinastership of the Ngaruawahia School. Mr J. Poland, Chairman of the School Committee, presided, and on behalf of the pnpils pressnted aa address and valuable present to Mr Warren, also on behalf of the settlers another address and magnificent present to 3Mr and Mrs Warren.