PLACER DEVELOPMENT.

Evening Post, Volume CXVII, Issue 147, 23 June 1934, Page 12

PLACER DEVELOPMENT.

Mr.Fred.G. Dunn, attorney for Clutha Development, Ltd., has received the following- special report:—l"]aeer Development, Limited, lias exercised an option obtained last year iiv'connection with the Pato mines located. in the Republic 'of Colombia and controlled by Oroville Dredging Company, Limited. In this connection a new operating company called Pato Consolidated Gold Dredging, Limited, with an authorised capital oE 2,000,000' dollars in dollar shares will be formed ill Colombia immediately. The Pato Company's properties, dredges, hydro-elec-tric power plant, stores, etc, in Colombia will be transferred to the new company in exchange for 1,000,00.0 fully-paid shares allotted equally to the Pato and Placer companies. Placer Development, Limited, and Pato Mines will subscribe equally for the unissued shares from time to time as working capital may be required. The new company.took over the property as from May 31 last. Placer Development, Limited. wilt submit to its shareholders a resolution for;increase oE capital, and provided this is passed 2500 fully paid Placer Development, Limited, shaves will be allotted to the Pato Company; should the resolution not be passed. Placer Development, Limited, will pay the Pato Company the equivalent of the shares in cash. Subject to the testing results of certain virgju ground the Placer Company is also to pay ■the Cato Company up to £30,000 (English) giving it the right to subscribe for Placer Development, Limited, shares with the same at the then market price. Under the arrangements now made the Placer Development and Oroville Companies, will co-operate equally in all future placer mining business in Colombia. One of the two dredges operating on the Pa,to properties will be forthwith altered and fitted -with special gold-saving equipment for the purpose of redredging tailings, while the other will continue dredging as at present.