MINING NEWS.

New Zealand Herald, Volume LXVIII, Issue 20947, 10 August 1931, Page 5

MINING NEWS.

KAWARAU COMPANY. AMALGAMATION AGREEMENT. The report of tha directors of the Ivawarau Gold Mining Company, Limited, Dunedin, for the half year ended March 31, states:—The negotiations for amalgamation with claimholders have been concluded and the new amalgamated company has been registered. Continuous difficulties arose from time to time in connection with the amalgamation, and it was not until May 15, 1931, that a final agreement was reached between the directors and the trustees for the new company. As a result of unforeseen claims it became necessary for certain modifications to the preliminary agreement to be settled by the directors and the trustees. Agreement was finally reached by which provision was made for the payment out of the deposit of £IO,OOO with the Public Trustee of the claims of the Southland Hospital Beard and the Cromwell Development Company, Limited, for the payment to tha Kawarau Company of sufficient to settle its remaining debts and estimated liquidation expenses, and for the balance of the deposit to be made available for the new amalgamated company whenever it became entitled to commence business. A total of £5500 has already been withdrawn from the deposit with the Public Trustee. In February of this year the sum of £SOOO was obtained for the purpose of discharging the company's debts incurred on claimholders' account. Previous to this a payment of £SOO had been made to the solicitors for the trustees for the amalgamation as a contribution toward the expenses in connection with the promotion of the amalgamation and the formation of the new company. These payments wero made under the provisions of the preliminary agreement for amalgamation. As soon as the new company is entitled to commence business and has adopted the amalgamation agreement with tho modifications mentioned, an. assignment will bo made by the Kawarau Company of all its assets to the new amalgamated company. When this has been done, and when all the company's debts have been discharged, the Kawarau Company will be in a position to liquidate. In consideration of the assignment of its assets, the Kawarau Company will obtain a oneninth interest in the new company in fully-paid shares, and these shares in the new company will be distributed to the present members of the comnany in proportion to their holdings. The present shareholders of the Kawarau Company will thus be absorbed by the new amalgamated company. The policy of the new company will be determined by its directors, but it is understood that their present intention is to secure the report of Professor Hornell, and the publication of the contents of this report will be awaited with interest.