GOLD IN FIJI

New Zealand Herald, Volume LXXII, Issue 22193, 21 August 1935, Page 13

GOLD IN FIJI

£1,000,000 FLOTATION SALE OF EMPEROR MINE SYNDICATE'S RICH HARVEST MR. THEODORE A MILLIONAIRE [bt TELEGRAPH —OTVX correspondent] SYDNEY, Aug. 13 Australian financial circles have been excited during the last few days by the announcement that, after many months of negotiation, the sale has* been completed of the Emperor gold mine at Tarua. Fiji, and that a public company has been floated with a capital of £1,000,000 to equip the mine with plant and to increase production. The share issue was many times pver-smbscribed, and unofficial sales of the 10s shares were made soon afterwards at 22s and 235. These financial operations were the climax of one of the most extraordinary and romantic stories in the history of goldmining. Mr. E. G. Theodore, former Labour Premier of Queensland and Treasurer in the Scullin Federal Government, must be thankful to Mr. Lane, the New South "Waleg Labour leader, for ending his political career. For it was after Mr. Theodore's defeat in the Balmain (Sydney) electorate, caused by Lang Party opposition, that he concentrated his attention on his own finances, and was able to devote almost his entire time to the Fijian gold leases, in which he had become interested. Now he is generally credited with being a millionaire, because of his returns in cash and shares from the companies he has formed. Two Companies Launched Sufficient had been proved by the beginning of this year for the Theodore group to launch two companies, Loloina and Koroere, to take over about 400 acres of the original 1000 acres grant obtained. The balance of the area is now the Emperor mine. The lode on the Emperor lease is reported to have been traced for 1300 ft. It has been developed to two levels, the lowest of which is 100 ft. below the collar of the main shaft, and by cross-cut-ting, shaft-sinking and winzing. In one place, it is stated, the lode is 90ft. wide.

The Tavua field his attracted much attention this year, and engineers, representing capital in all parts of the world, have inspected the properties of the Emperor, Loloma and Koroere companies. Recently a rearrangement of capital of Loloma Gold Mines was made to permit the subscription capital by a London group, Mr. W. S. Robinson, for long representative of large Anglo-Australian goldmining interests, being one of those interested in this transaction. The same group secured an allotment of shares in the Emperor mine. Emperor Syndicate's Receipts For the sale of the Loloma property Mr. Theodore received £6OOO cash and 60,000 fully-paid 10s shares, which would be worth a good many times more than their face value, if they could be bought. Vendors' consideration for the Koroere property was £SOOO cash and 90,000 fullr-paid shares, for Mr. Theodore and his partners, the shares to-day probably being worth £200,000. The syndicate which sold the Emperor mine—Messrs. Theodore, John Wren, P. F. Cody and F. Packer (part-owner with Mr. Theodore of a Sydney women's newspaper)—received £300,000 cash and 600.000 fully-paid 10s " shares, these shares being worth on market value about £1,200,000. The members of the syndicate also have the right to apply, within. 15 months, for 350,000 more shares at par. A public issue of 900,000 shares was made. The prospectus contained a glowing report on the mine by Mr. T. 11. Victor, now one of the directors. He valued ore reserves already proved at £1,100,000. He estimated the ore reserve in three sections measured at 111,500 ounces, and that, when his recommended plant was in operation, the mine should have a revenue of £IO,OOO a month "After a very careful examination," he added, "one is amazed at the potentialities of this large formation. I believe the mine will eventually prove one of the leading producers owned by Australian interests." Provision for >« Old Bill" And what of the original discoverer of the field? Unlike many prospectors whose finds have made fortunes for others. "Bill" Borthwick is secure for life. One of the original members of the syndicate said: " 'Old Bill,' who is more than 70, came more than 50 years ago from Britain and prospected Australia and New Zealand, and then drifted to Fiji. Fcr a long time he had no luck, but one day Pat Costello, another of the original syndicate, suggested that he should have a shot out Tavua way, where Costello had hcr.rd that coloured stone had been noticed in a creek. Bill was agreeable, and Costello arranged to 'grub-stake' him and also came to, terms about a share basis. Bill went to Tavua and prospected on the site of what had been a cattle station. With his uncanny nose for the metal, it was not long before he found the gold. That was in 1932, and the rest is mining history. "When I last heard from Fiji, it was reported that out of the Koroere shares, which Costello retained, when that company was .floated, he mado over sufficient to Bill to secure him independence for life, but the old prospector is far from retiring. An idle life docs not appeal to him. He is still looking for ether fields, and disappears for days at a time."