KAPANGA GOLD-MINING COMPANY.

New Zealand Herald, Volume XVIII, Issue 6163, 18 August 1881, Page 6

KAPANGA GOLD-MINING COMPANY.

[FROM THE MINING WORLD AND ENGINEERING ; ■.■"■■' RECORD.] The annual meeting was held at the Offices, 14a, Austin Friars, London, on Monday, the 20th June. Mr. Tufnell Southgate in the chair. The Chairman proposed, "That the accounts, as circulated to the shareholders, be received and adopted." ' Mr. Peter Watson seconded, Mr. T. C. Parry : They certainly are very simple. The only creditors of the concern seem to amount to £211. The motion was carried unanimously. Mr. Ashraead was appointed auditor. Mr. Lavin«ton then read the notice convening the special meeting:—"That in accordance with article 35 of the regulations of the company, the capital of the company be increased to £100,000 by the issue of 50,000 shares of £1 each beyond the existing capital. That the directors may agree to allot, and may allot, such part of the said increased capital not exceeding 25,000 shares as fully paid up shares pro rata. amoDg the persons who shall agree to subscribe for the first 25,000 shares of the increased capital, and shall accept such shares and shall pay thereon such sum as the directors shall require to be paid on the allotment of such ohares."

The Chairman : This meeting is called to confirm the resolution which was passed on the 2nd of June, for the raising of further capital, at which a very fair number of shareholders attended, and at which I think they will agree the matter was very well talked out. We sent out to the shareholders a report of what took place. Since then wo have received no news of great importance. We have had a. communication from Captain Thomas, in which he intimates to us that he has Bunk 91 feet to the end of April, which is very satisfactory. We have also had a communication from him by wire, with regard to the property I mentioned at the last meeting, that we might possibly think it judicious and expedient to acquire. We had a communication from him to say that he thinks we shall be able to acquire it with hardly any expense at all, and that will be rather important, because it will, he saya in his letter to us, "enable us to work at Scotty's reef at great advantage." "We shall be able to continue our 50 cross-cut right on, and he also is certain that he can get some tributers to work there, and I think it is a very important thing if we can acquire it, but I would rather have a communication positively to say we have got it. A Shareholder : What is the extent of it?

The Chairman : Quite equal, I believe, to the Kapanga. It is a great property, and the royalty is very small indeed. 14 is only a sort of nominal dead rent.

A Shareholder : Then there is no expensive lease to be purchased ? The Chairman : Nothing of the kind. Mr. Wilson : It is important in various ■ways. Mr. McGeorge : You are reported to have said at the last meeting that Captain Thomas had cut a good lode. The Chairman : From the end of the telegram the word "soon" ivae omitted.

Mr. Parry : Tho main point for us to consider is as to the probable amount of money needed for the sinking of the shaft and the geuer.il management of the concern. It is a diilicult question, and it is almost impossible for you, sitting in Austin Friars, to say exactly what is wanted, but I supose estimates have been made, and that you are not asking the shareholders to contribute a further sum to this undertaking without having informed yourselves as far as you can as to the probabilities in this case.

The Chairman : The Board have gone into this matter very carefully. If you.refer to the report of Captain Nancarrow, he says we require £5000 to siuk the shaft, and that is exclusive of any charge for winzea, the working and driving of levels, and the other expenses of the mines. We put down another £5000 for the other work. "We think it will be advisable to send out some boring machinery. My friend, Mr. Peter Watson, is a greater judge of the expense than probably anyone else, and he thinks a couple of thousand pounds would go a great way. That includes carriage from England to New Zealand, which we have reason to know is very expensive. We had on one occasion to get them to cut up the deck of a vessel to carry the machinery out. There is a certain expease—very small—from London for eighteen month 3, and we owe about £1000 or £1200 besides. Our debt will be about £1500. One of the Board (Mr. Peter Watson) has such confidence in the concern that he has advanced £500 to meet current expenses. He is a sort of facile pr'mceps in raining, and understands what ho is about when ho lends us the money, and I have no doubt he will do so again. If he lends us money, it may be fairly a33umed that he thinks there is a very good chance of getting it back. These items together would make a very large hole in £20,000.

Mr. Parky : In other words you con template calling up £25,000?

Mr. Peter Watsox all at once.

Ultimately—not

The Chairman : Captain Nancarrow says it would take twelve months to go down to the required depth, and we say about eighteen months—that is, from the time he was there in February.

Mr. PfiTEE Watson : Four or five months cf that has gone.

Mr. Parry : What prospect have you of getting the money ? The Chairman : We have sent out a circular to each shareholder, and we have received several communications, statiug that they will take up their quota. We have received communications from one or two who are not shareholders, stating that they will be prepared to take shares, and at the same time we have received a very large amount of proxies to-day, which, I suppose, may be taken as confirmatory of the course which is proposed to be adopted. Several shareholders have agreed to take considerably more than their interest. There will be pro rala applications in the first instance. Practically, I understand, the shares now are at 50 per cent, discount.

Mr. Peter Watsox : I shall take more than my share.

Mr. H. Wilson : All my friends are exactly of the same opinion, and several of them are large shareholders. If ever they had an idea of abandoning their association with the property this is not the time to do it.

Mr. McGeorge : They must he men of very large faith.

The Chairman : Unless they were that it would he no use of them going into mining. (Laughter.) Mr. Gibbs : Two years ago we were in a very unsatisfactory position, but now the property is quite free. Mr. Peteh Watson : Yes, and working. A Shareholder : What fees do the directors get ? The Chairman : There are five directors, and they divide amongst them the large sum of £250 per annum. Mr. Pbter Watson : I understand from the Government returns that one mine yielded 13 tons of gold ! Mr. Parry seconded the resolution. Mr. Bolton said a suggestion was made at the last meeting as to allowing shareholders so disposed to pay up in full. Have you taken that into consideration ? The Chairman : Should any shareholder wish to pay up in full he may do so, and

acquire his bonus shares at once. The Board ! have come to a resolution to this effect. Mr.' Paery : Will yon give him interest ? The Chairman : No, but we will tpve him bonus shares at once. It will be for him to consider whether this advantage is worth bis while or not. ' Mr. Parrt : At what rate do yon propose to call up the money on the new shares ? The Chairman :. 2s 6d on application, 2s 6d on allotment, and the balance as may be required. . : The resolution was then carried unanimously. ■ . • Mr. Parbt moved a vote of thanks to the chairman for the courteous way ic which he had conducted the business of the meeting. Mr. McGeorob seconded the motion, which was agreed to. The Chairman, in replying, said : In common with the rest or my friends on the Board, we only want to deserve your confidence, and when we have it we are fully satisfied. The meeting then closed.