Alex Harvey makes deb. placement

Press, Volume CXI, Issue 32562, 23 March 1971, Page 16

Alex Harvey makes deb. placement

(New Zealand Press Association) AUCKLAND, March 22. Alex Harvey Industries, Ltd, has made a private debenture placement of ssm in Australia and New Zealand. The company has also arranged for sBm in bank stock as a security for present or future debts.

The New Zealand part of the debenture issue is to the value of $2,750,000 at 7| per cent for 15 years and 7} per cent for 10 years. The Australian debentures of $2,250,000 which takes into account the substantial shareholding of Australian Consolidated Industries in Alex Harvey ’ — have been issued at 9} per cent for 15 years and 9} per cent for 10 years. The chairman of Alex Harvey Industries (Mr W. D. Barclay) said that the purposes for which the additional funds would be put covered a wide field of development, expansion and mechanisation within the group.

The funds were needed because of a shortage of working capital resulting from the company’s growth at a time of inflation. He said that the sBm bank arrangement was not additional to the ssm in debentures. Some of the company’s present overdraft was unsecured. Part of the arrangement also provided for future contingencies. Asked if the debenture issue signalled action on the company’s scheelite prospects in the South Island, Mr Barclay said that some of the funds would be used in this field. “We are still in the development stage there,” said Mr Barclay, "although we are further along than at this time last year.” In the Glenorchv area, where the company has been prospecting, mainly for scheelite (tungsten ore), it has mining propecting rights and mineral licences over 70,000 acres. The mineral licences are in effect mining licences. The last annual report of the company said that extensive exploration had been carried out over 18 months at Glenorchy, and results justified continuing expenditure on exploration and development.

V. and G. Aust, to liquidate (N.Z ,P.A.-Reuter —Copyright) MELBOURNE, March 22. Cowan Group (Holdings), Ltd, reports that the collapse of the Vehicle and General Insurance Company, Ltd, in Britain, has had a direct and serious effect on the Vehicle and General Insurance Company (Australia), Ltd. Much of the reinsurance of risks underwritten by the Australian companies was placed in good faith with their English counterpart, and the inability of the English company to meet commitments has reluctantly forced the directors of Vehicle and General and its wholly-owned subsidiary, the Country Traders’ Mutual Insurance, Ltd, to announce withdrawal from the insurance business in Australia.

An approach will be made to the Court in the interests of the creditors to seek the appointment of a provisional liquidator for the Vehicle and General Insurance Company (Australia), Ltd.

Magellan gas for Japan? Magellan Petroleum Australia, Ltd, confirmed that it had been approached by Japanese interests in connection with the sale of natural gas from its Palm Valley field in Central Australia. Representatives of . the Japanese firm had indicated an interest in purchasing a minimum of 300 million cubic feet of Palm Valley gas a day for 20 to 25 years. Transporting the gas from Palm Valley to port facilities on the Gulf of Carpentaria would require the construction of a 24-inch pipeline over a distance of about 600 miles. The gas would be liquefied at the northern port for shipment by tankers to Japanese markets. Liquefied gas is already being shipped to Japan by this method from Alaska and Brunei. The gas shipments are a part of a concerted effort by the Japanese to combat the serious pollution ' problems developing in its industrial areas. The gas is being used as a substitute for high sulphur oil and coal. Brazil devalues Brazil’s Central Bank devalued the cruzeiro for the second time this year and announced that from tomorrow SUSI will be sold for 5.11 cruzeiros; the buying rate will be 5.08 cruzeiros. The previous rates for the dollar were five and 5.03 cruzeiros, set on February 9. Rio de Janeiro, March 21.