Kaurex calls on extra funds

Press, 2 December 1987, Page 40

Kaurex calls on extra funds

PA. Wellington Delays in commissioning a peat processing plant had reduced the resources, of Kaurex Corporation and forced it to seek extra finance, the directors said yesterday.

The extra funds would have to be enough to carry the company through to profitable production. Short term finance for capital modifications and trading expenses for the rest of 1987 had been raised.

The company had had a positive response from shareholders to a proposed cash issue.

However, directors said an issue could not be considered until the present modifications programme was completed and the plant had been proven. Kaurex, which emerged from the 1985 reconstruction

of Kauri Deposit Surveys, was formed to extract waxes and resins from peat at a plant in Northland.

The extraction process was still not producing satisfactory yields of wax and resin. The company also had problems with machinery used at the plant and the services of Spencer Thomas and Associates, its consultants on the plant, had been terminated.

A report on the plant and projected production once it was running continuously bad also been commissioned. The report was expected before Christmas.

The managing director of Morrison-PIM Holdings, Mr John Maasiand, would be joining the board from November 24. Morrison-PIM is a Brierley Investments’ subsidiary.