MAHAKIPAWA GOLDFIELDS CO.

Nelson Evening Mail, Volume LXIV, 28 May 1930, Page 9

MAHAKIPAWA GOLDFIELDS CO.

FUNDS EXHAUSTED PIAT SENT ROUND (By Telegraph— Special to “The Mail”) CHRISTCHURCH, This Day. Faced with a deficiency after all outstanding calls are paid, with debenture holders pressing for payments, and no money to carry on even secretarial work, the shareholders of Mahakipawa Goldfields Ltd. at the annual meeting last night heard little to cheer them. Tho hat had to be taken round for subscriptions from shareholders present to allow tho company to carry on for another month while circulars explaining the position are sent to all shareholders.

The majority of those present at the meeting, numbering 75, and representing one-sixteenth of tho shareholders, after hearing the engineer’s reports, were in favour of making an attempt to prevent the company going into liquidation. Final decision has been delayed for a month, while the money collected at the meeting pays for the circular to other shareholders asking financial assistance. The chairman, Mr C. A. Stringer, in moving the adoption of the annual report and balance sheet, said the last meeting had been an extraordinary one in August last year, when it had been decided to raise further capital by means of preference shares. The response was very poor, only £1225 worth of shares having been applied for. Then the company entered into an agreement with Mr J._ M. Stewart, a well-known Dunedin mining engineer, to put down five bores each of 135 ft in depth. The result of these bores was very disappointing with" the exception of one from which the return had been satisfactory. Tho position at present was that the company’s funds were exhausted and no money was left with which to carry on work. Shareholders were left with three possible courses—(l) To subscribe more capital, and such would have to be a- big sum to be of any real use ; (2) authorise the directors to deal with tho capital; (3) go into liquidation. Something had to be done immediately, and tbe greatest need was capital. Although the bores had been proved unsatisfactory, the workings had by no means explored the whole acreage owned by the company, and further bores might result in a strike much richer