GOLD COMPANIES

Evening Post, Volume CXXIII, Issue 142, 17 June 1937, Page 12

GOLD COMPANIES

GLENROY AND MAORI GULLY

Shareholders of Glenroy Gold, Ltd., have two choices before them, according to the directors' annual report: to take up debentures to a minimum value of £500 and to provide working capital with which to carry on, or take immediate steps to go into voluntary liquidation. In the year ended January 31, 1937, the company showed a net loss of "£69. Gross profit from the mining account was £146; but expenses in the profit and loss account took £21G,leaving net loss of £69. This brings the debit balance in profit and loss appropriation account to £1850. The directors report that they have offered the company for sale without success; that there are no funds available for capital outlay. The annual meeting of the - Maori Gully Gold Dredging Company was held at Greymouth, Mr. J. M. Bunt, chairman of directors, presiding. The retiring directors, Messrs. Shannon and Richardson, were re-elected unopposed. The chairman said that the meeting would have to consider a recommendation from the directorate that the company should acquire a new claim, in view of the fact that the estimated life of that being worked would terminate on March 31 next. They could wind up the company or otherwise deal with the assets. He estimated that shareholders would obtain approximately 6d per Is share were the company to use available resources in repayment of capital, whereas shareholders could secure the equivalent of this on the market. To ensure not only a full return of capital, but also additional profit, the obvious course appeared to be that of working a new and proven claim with a longer life than Maori Gully, preferably one with a ten years' life. The directors' proposal to obtain a new area was adopted, after some discussion, by a substantial majority.