Consol. Silver needs $0.5m

Press, Volume CXI, Issue 32637, 19 June 1971, Page 20

Consol. Silver needs $0.5m

(New Zealand Press Association?

AUCKLAND, June 18.

The Consolidated Silver Mining Company of New Zealand, Ltd, has now achieved a cash flow from its mining and milling at Maratoto Valley. However, another $500,000 capital will be needed to bring the company into its second phase of activity, the directors say in an information bulletin sent to shareholders today.

The report says that the first two shipments of concentrate from the Maratoto Valley have been sent to the British Metal Corporation for treatment at a West German refinery. The company received $6613 as part payment for these shipments, and a regular monthly’ cash flow is expected. The capital increase is necessary to enable the company to move into its second phase of activity whereby the present cash flow can be increased.

Capital of $125,000 is required for the Silver Queen, and Camoola mine development to prove ore reserves, and to provide minor extensions to the mill. Development expenditure and working capital for a new non-metallic minerals division will require $lOO,OOO and to begin proving ore reserves at the great barrier, $75,000 is required. Exploration programmes and administration have cost $200,000. Particulars of an issue to raise the capital will be anounced later, but it is envisaged that the shares will be issued half-paid on allotment, with the balance payable next year.

Considerable work is planned on the Coromandel prospects this year and negotiations for the sale of substantial quantities of raw perlite from the Great Barrier deposit, for both local and export markets, had

begun. Subject to the company’s ability to supply the required quantity and quality, a substantial cash flow from this source is possible. Besides perlite, many sizeable deposits of rock, which can be used for decorative purposes, have been located. The company has examined the feasibility of setting up a decorative rock division, but because of a iack of capital

has not gone far along these lines.

In view of the likelihood of the perlite producing a cash flow, and the fact that a number of the decorative rock products are readily accessable, the directors propose to set up a separate division to handle the non-metallic side of its operations, the report says.