Commercial Con. Silver future looks brighter

Press, 27 January 1979, Page 19

Commercial Con. Silver future looks brighter

PA Aucklanc ( Consolidated Silver Minins j Company of New Zealand Ltd. is considering a merge which could result in 1 "back door” entry into the '! stock exchange for an un (identified, private manufac Turing company. i Consolidated Silver share 1 holders would have an invest Intent in a profit-making ven iture, but control of the com panv would have passed into (other hands. : At the annual meeting a I special resolution was passed (which cancelled $1,255,407 lof the paid-up capital, which has been lost or is unrepresented by assets. The capital reduction, from $1,569,259 to $313,8'52. was approved unanimously bv ths 20 or so shareholders present. The number of shares or issue remains unaltered, but the nominal value of each share was reduced from 20c to 4c.

I Asked to provide details of >lthe discussions taking place, J the chairman (Mr W. N. ■ i White) said he was not in a I I position to disclose the identity of the private company, 1 or the nature of its business. 'I except that it was a manuifacturing company established 25 years and earning i ’(good profits. J He told the meeting that I the reduction in capital was la prerequisite to the negotia'jtions “the new capital figure ( represents an agreed figure which the other company is . prepared to accept”, he said. I Mr White said it was a (reasonable assessment of the (value of the Consolidated Silver, bearing in mind the taxlosses. • If the negotiations were 1 successfully completed, Con- ' solidated Silver would aquire the assets of the manufacturing company by issuing $400,000 worth of shares, and paying, in cash, a share of future profits over a period of years. The company concerned

[was making profits at present of about $300,000 a year, Mr White said. Mr White said the prospect for Consolidated Silver shareholders was three years: profit, with no tax liability, i The negotiations had been: in progress for three or four( months, and it was hoped toi achieve finality by the end; of March or early in April J Mr White said applications! for prospecting licences for rutile-bearing areas in Fiord-: land were now with the Gov-1 eminent departments con-1 cerned.

“We can’t see any genuine reason why the environment-

alists should object,” he said. Mr White said he could not say how many test-bores had been driven, but it could have been 100. The indications were that of large areas

of rutile-bearing sand. The directors did not see any future for the company in silver. Underground mining was expensive and the

company could not deal with it financially, Mr White said.