KAWARAU GOLD

New Zealand Herald, Volume LXXI, Issue 21899, 7 September 1934, Page 12

KAWARAU GOLD

NEW VENTURE PROCEEDING LONDON FLOTATION PROPOSED Advice of the proposed flotation of Kawarau River Gold Company on the London market was conveyed to the Wellington Stock Exchange this week. According to a cablegram received from London the capital of the new company is £450,000 in shares of 2s each, of which 1,400,000 are to be allotted in part payment of purchase consideration. The vendors are Amalgamated Kawarau Gold Mining Company, Wellington, and the purchase price is £10,200 and the above shares. It is proposed to dam the river below the junction of the Arrow River- nnd the engineers are Balfour Beatty and Company. Amalgamated Kawarau Gold Mining Company, Limited, was formed in 1931 with the object of amalgamating the parent company, known as the Kawarau Gold Mining Company, which erected the original dam at Frankton, arid those which leased and held claims on the Kawarau River. A bill empowering the amalgamation Avas passed by Parliament in 1930. All the interests held by the parent Kawarau company, subsidiary companies, syndicates, and individual claimholders, were incorporated in the new Amalgamated Kawarau Gold Mining Company. A report upon the scheme was secured from Professor Hornell, the Swedish hydraulic engineer, during his visits to New Zealand to report upon Arapuni. The directors proposed to build a new dam on the Kawarau below the junction of the Arrow River, and by this means hold back the waters of the Arrow and tho Shotover, which were the chief obstacles to the success of tho original attempt in 1926 with a dam at the outlet of Lake Wakatipu. The Amalgamated company was registered with a. nominal capital of £250,000 in 5,000,000 shares of Is each. Of this, £117,000 was reserved for issue as fully paid, £104,000 being to claimholders of tho Kawarau River and £13,000 to the parent Kawarau Gold Mining Company in consideration for its interests, rights, machinery, capital and lease of the river.