N.Z. Goldfields to consider liquidation

Press, 18 December 1989, Page 14

N.Z. Goldfields to consider liquidation

PA Auckland New Zealand Goldfields directors will consider liquidating the company at a February meeting, according to the chairman, Mr Maurice Goodwin. This follows a proposal put at the company’s annual meeting by 30 per cent owner Kalimantan Gold to pay about $7.5 million in liquid funds held by the company. The final decision now appears to rest with the company’s largest shareholder Exchange Commerce

Corporation, which controls another 49 per cent. The appearance of these two shareholders on the company’s share register in 1985 was accompanied by one of the New Zealand sharemarket’s great share price runs. The share price in June, 1985, at 85c ran to 630 c within a year. Mr Goodwin said the shares at present had a cash backing of about 45c each in addition to other assets. He said Goldfields had now effectively ended its involvement in

Indonesia owning to a major participant in its remaining area of interest in Sumatra declining to fund further exploration. Mr Goodwin said the company had a pre-feasibility study on mining its Karangahake prospect in New Zealand. Directors at their meeting in February would then consider whether to pursue this mining venture or wind up the company. Mr Goodwin noted that it was expensive to maintain Goldfields as a listed company.