Underwriters shy of K.I.

Press, Volume CXIV, Issue 33539, 21 May 1974, Page 18

Underwriters shy of K.I.

(N.Z. Press .4sjn—Copyright) SYDNEY Kathleen Investments. Ltd. has declined to act as a joint underwriter with Con'zinc Rio-Tinto of Australia. Ltd, for the proposed equity issue by Mary Kathleen Uranium, Ltd, it says in a letter to the Minister for Minerals and Energy (Mr Conner). MKU, which is 51 per cent-owned by C.R.A. and 35 per cent by Kathleen Investments have not been [able to obtain outside underi writing support for the issue [to raise slsin to reopen its uranium mine because withjout further contracts it [would be unprofitable, i Contracts to supply 4870 tonnes of uranium oxide are held by Kathleen Investments. The chairman (Mr J. Millner) says in the letter to Mr Connor that the Federal Government’s refusal to allow M.K.U. to write contracts on the remaining 2293 tonnes of low-grade ore reserves could cost Kathleen Investments its 35 per cent equity interest. This could be avoided by the Government approving contracts with suitable price adjustment clauses, he says. M.K.U.’s contracts call for (uranium ore to be delivered [from this year on, but these [can be met only by borrowing to re-equip the mine,; and recondition the plant. RIGHTS MARKET Last Buy Sell Sale Brambles B. — 4 5 Prudential 20 — 20|'