A TALISMAN SCHEME

Dominion, Volume 3, Issue 823, 23 May 1910, Page 10

A TALISMAN SCHEME

NEW SHARES. 11 t FURTHER DEVELOPMENT MONEY. \ c BOARD'S PROPOSALS. (By Telesraph—Press Association.) ® Auckland, May 21. 1 The Talisman Consolidated G.JI. Cdmi- 1 pany issued a circular to-day stating ? that it was decided to enter into a big j scheme for vigorous development of the s Woodstock property, which is believed s to contain much payablo ore. It was j intended to enlarge and sink the Wood- < stock shaft the required depth to con- j nec.t with the lower workings of the Talisman mine, to instal permanent j pumping machinery, to provide the , necessary winding plant, to provide considerable mine and milling machinery, i to reorganise the treatment plant, and to do other nccessary things in connection therewith. I Towards the completion of this scheme 1 the directors have already provided over | .£60,090 out of accumulated and current j profits. They have decided that tlie time' ha 9 now arrived when it is desirable to capitalise this expenditure. The satisfactory developments recently ma4® justify the expectation that the monthly returns and dividends will be maintained fully, and that sufficiently increased profits will be earned to pay dividends on fresh capitalisation. ' The board has decided to adopt the suggestion*made at tho last annual meeting to make existing shares fully paid, but will make a call of 25., and will simultaneously declare a special dividend bonus of 25., appropriating such dividend to payment of call. This will he done at the date of tho annual meeting in June, and the operation will capitalise .£30,000 of the above expenditure. To provide fresh funds for working it is proposed to take power to increase the capital by tho issue of 45.000 shares of 20s. each on the following terms, namely, 45,000 new shares will bo offered to present proprietors pro rata at a premium of ss. per share, payable as follows:—Ten shillings on including the premium of five shillings, and the bdlance in three equal instalments of five shillings at periods of three months, six months, and nine months thereafter respectively. Dividends accruing on instalments will b© due when the instalments are paid, and are to be paid at the same rate as they are declared on the existing capital. MORE ABOUT THE PROPOSAL. LOCAL DIRECTORS' STATEMENT; Upon inquiry from tho members of tho local board, a Dominion reporter learned that the board had been consulted some ' time ago in regard to the scheme. The 1 additional capital, it was stated, was 1 required because the company was spending £15,000 in equipping the Wood- • stock end of the mine, and *£30,000 in ' pumping and exploratory work and on new plant for tho Talisman pTopeT. There were three ways in which the

noccssary money could have been raised: (1) By calling up'the'remaining 2s. in i the X (uncalled capital on present shares) and not paving anv bonus, which would have provided (•J) By not paying one or two dividends, to which shareholders would ■ naturally liave taken exception, but which would have provided <£-15,090; (3) By the scheme as proposed— Capitalising the Woodstock expenditure )y asking the shareholders to provide ho necessary capital. Under the scheme it would mean that very shareholder would-be asked to take tp three new shares for every 20 which to now held. "With regard to the calling ip of the remaining 25.. that would bo u-ovided for by a special bonus ot Ls. ['he object was to make the shares >aid up, which would enable individual hareholders to finance on their own liarcs, bccausc the London banks \would tot advance any money on shares hey were fully paid up. Of tho 300,000 hares in the company, 60,000 were held .t Home and 220,000 in Sew Zealand. There would—in tho opinion ol tn© uembors of the board—be many advaiiages under the new scheme. fo rith, it would provide a big shaft, which rould enable raining operations to be onducted on a much larger scale than dtherto. In order to secure this, it nail ►een necessary to carve a great cathedral ut of the solid rock. Some of the new machinery had already been installed in his big chamber. The nature of tho acalitv was such that it was necessary o blast , a place out of the rock for. the oilers to work the winding engine. Another result of the extra capitalisaion would be that the company would >e in an exceedingly strong position, beause, instead of having to depend on its mllion, it would have cash. It was nentioned that it took v the company bout three months to get the ore conerted into hard cash. If the new scheme >*.ere carried out it would not be neccs- I ary to hurry with the conversion of the mllion into asset unless it were to the dvantage of the company. The members of the board added that TCrrthin® in connection with the mine •as going on very well. The winzes were oin* down satisfactorily, and the rise roin tho floor of the thirteenth level oing up towards the twelfth level, which •a 5 * known as No. 15, was 70 feet up and ii good ore, the latest advices showing hat the ore was-improving. During the iast six months greater improvements iad been efFected than during any preious • half-year, and this without disocating tho returns.