GOLDEN BELT GOLD MINING COMPANY.

Auckland Star, Volume XXXIX, Issue 78, 31 March 1908, Page 5

GOLDEN BELT GOLD MINING COMPANY.

LIVELY MEETING. OF- SHARE- ' HOLDERS. CAPITAL OP COMPANY TO BE Usually meetings of shareholders in mining companies are dull, comparatively little interest being taken in them, but this morning there was quite a lively scene at the special meeting of shareholders in the Golden Belt Gold Mining Company. There were between thirty and forty shareholders present, and the chairman (Hon. E. Mitchelson) explainedthat they had been called together to consider proposals for increasing the capital from £25,000 to £37,500. He said when the Company was formed it was not anticipated that so much capital would have been required. It was perfectly clear to bis mind that the great evil in connection with many of their mining companies was that they started with insufficient capital to properly develop the areas held. He considered the Golden Belt mine second to none in the Thames district, but it would require more money to make it a paying proposition. The mine was situated in a large reef district, and owing to its enormous area, required a big scheme of development. At the No. I level they obtained £3000 from 1100 tons of ore, and another 300 tons had been awaiting treatment since January, owing to the dry season having cut off the water power for the battery. Fires bad destroyed the water race, and since then freshes had ;"flone further damage owing to the logs coming down the creek for a timber company. The directors now proposed to fetch in the water supply from another source, in iron pipes. On the Company's freehold section loose prospects of gold were got which warranted the directors in advising sluicing to be undertaken. The directors were satisfied that by that means gold could be obtained in payable quantities, and it would also serve to uncover the reef which had shed it. Two directors had recently inspected the property, both practical men, and it was on their recommendation that the directors decided touring forward these proposals. The directors had taken considerable responsibility on their shoulders, having become personally responsible. The present liabilities were £3,086, the work recommended entailed the expenditure of £6,870, which would leave a surplus of £2,544. Shareholders who did not take up the new issue would, he felt, not he acting in their own best interests. The total amount expended on this property to date was £ 35,700, and £ 11,426 had been won from the mine. He moved "That the capital of the Company be increased to the amount of £37,500, divided into 375,000 shares of 2/ each, such shares to be issued as ordinary sliares, ranking as to dividend and as to distribution of capital on a winding-up pari passu with the ordinary shares on the existing capital of the Company."

Mr. D. G. Macdonnell said he recognised the necessity of increased capital, but objected to increasing the number of shares. He suggested thai the company should be reconstructed, and an extra 1/ liability be put on the present shares which would give £12,500. He thought it would be a mistake to increase the number of shares to 375,000. That would enable the market to ,be simply flooded with shares. He moved as an amendment that the capital of tho company be increased by £12,500 by an assessment of 1/ per share, and that the number of shares be not increased.

The chairman said the directors had acted upon the solicitor's opinion in what they recommended.

Mr. G. A. Buttle said he was not speaking as chairman of the Stock Exchange. As a shareholder he agreed with Mr. Macdonnell that it was not advisable to increase the number of shares. They held a valuable mine, and had exhausted their capital, and the results showed it would warrant further expenditure. He doubted even now if

£ 12,500 was sufficient. He would prefer to raise a still larger amount by a system which did not necessitate the issue of further shares. He believed the Golden Belt was one of the best mines, but he objected to flooding the market with thousands of shares. It would be preferable to reconstruct the company, and have the shares at £1 each.

Mr. John Colbeck supported Mr. Mac

donnell and Mr, Buttle. Shareholders would not refuse to take up their shares when they were worth 2/ on the market. He considered the mine had not been I managed as it should have been in the interests of the general body of shareholders who had a right to demand of the directors that so long as the battery was working, the results of crushings should be announced at stated intervals, preferably monthly. It was not right or proper that knowledge as to how the mine was turning out, or how the crushin<* was shaping, should lie in the hands of ° gentlemen —he repeated the word "gentlemen" —but still speculators in shares, who bad knowledge three months ahead of any the shareholders could get. He also considered it was a mistake to put up a 40-stamper battery without first developing the mine enough to see whether even a 10-staroper one was required. He also considered that other of the bigger mine's assay values should be given month by month from the reefs being worked. It should not be left to people to have to creep and crawl to secure information that every shareholder in the mine was entitled to. He also thought their mine should be connected by telephone with Auckland. 'Mr. W. Blomfield said he would like to be sure that the present proposal would provide ample capital, as last time the directors thought they had sufficient. Mr. E Anderson said that in view of what had been said, the meeting should be postponed. While he recognised that directors had put forward whab they considered to be the best scheme, still he felt that if the company was reconstructed, as suggested by Mr. Macdonnell, the shares would all he taken

up. Mr. J. Beck suggested that they should first get a reliable report from an outside source as to the value of the property and the best method of development. Upon the question being put to the

meeting, IS voted for reconstruction, as suggested by Mr. Macdonnell, and 15 against it. A poll being demanded', the amendment was lost, 18,018 shares be-

ing for it and 82,474 against. Mr. W. Gorrie said, after all, it was evident the shareholders -were united in favour of raising more money; it

was only the question of method upon which they divided.

The chairman said the question was one which had given the directors considerable anadety. The only difference jaibfl! -SMefcwg _iO|fe fi_4

number of shares should be' increased. Referring to Mr. Colbeck's criticisms, the chairman said he considered it absolutely scandalous that the directors of the company should be so slandered. / Mr. Colbeck did not say anything about the means shareholders had of getting news from the mine before the directors got it.

Mr. Colbeck: That is not true. I have never had news irom the Golden Belt Mire ahead of the directors.

' The chairman. What about other mines, then?"

Mr. Colbeck: Sir, I am surprised at you.

The chairman said the remarks of Mr. Colbeck meant that shareholders had lost confidence in their directors, and if such was really the case, they should have turned the present board out at the annual meeting. He would not remain on the board if that was the general view of shareholders. Mr. Colbeck had not spoken out plainly, but by inuendo had slandered the directors, and he

would not take that from any man. in the country. He had always acted in the best interests of the companies of which he was a director.

Mr. Colbeck

That is so, sir."

The chairman said he could have made thousands had he trafficked in Tkirua. Broken Hill shares, and yet he did not sell any until a few months ago. He could give a direct contradiction to Mr. Colbeck's statements. It was the rule of every company of which he was director that information ' should be available to shareholders as soon as it reached the office. He, however, agreed with Mr. Colbeck that battery returns should be given at stated periods, and that would be done in future. He admitted that had been a blot on some of their companies in the past. Returns should be available at least once a month. With regard to the 40-stamper battery, that number would be needed once the level reached the "Bluffs." The directors were satisfied that the capital now asked for would be sufficient. The mine wOuld pay well if it was properly worked with the additional capital; ahd should be able to return dividends to shareholders. He knew that shares at Limes rose on the Exchange when directors had no information to warrant the rise, and when he inquired/the reason he was informed, but, of course, could not state whether it was true, that sharebrokers had men in their pay in most of the mines.

Mr. Colbeck: "You should not say what you are not prepared to prove. You should be ashamed to mention it."

The chairman: "I simply give the explanation made to mc." , The motion was then adopted, also the following one: —"That the 125,000 additional shares be offered at par in the first instance to the present members of the company in proportion as nearly as may be to the number of shares now held by them respectively, and upon the footing that the sum of twopence per share shall be paid to the company on acceptance of the offer, and a further sum of twopence per share on allotment, and that such offer shall be made by notice specifying the number of shares to which the member is entitled, and limiting a time within which the offer, if not accepted by payment, will be deemed to be declined; and that the directors be empowered to dispose of the shares not taken up in response to such offer as they may consider expedient in the interests of the company."