Page 18 Advertisements Column 3

Otago Daily Times, Issue 19204, 21 June 1924, Page 18

i/UDOUi BRUHMB StAM GREY VALLEY COLLIERIES LE (To be Incorporated under “The Companies' Act, 1908.”) NOMINAL CAPITAL, £150,000 I • Divided into 150,000 shares of £1 each, of which 24,000 fully paid shares are to be issued to the vendors, in consideration of the purchase price to be paid for the leases and chattels to be apquired by this Company as hereinafter provided. 76,000 Contributing Shares are now offered to the public for subscription upon the following terms:— \ 2/6 on Application, 2/6 on Allotment, ( and the balance in calls of not more than 2/6 per share at intervals of not less than TWO MONTHS. (On the completion of this issue it is anticipated that not more than 10/- per share will be called up). 50,000 Shares are to be held in reserve. The minimum subscription at which the Directors may proceed to allotment is 20,000 contributing Shares. iiiiiDiiiiiiii>niinniiiiiniiiiiiiiii)iiiiiiiu!iHiiiiiiiiiiiiiHiiiiiiiiiiiiiiiiiiiiiiiniitmiiiiiiiiiiiiiiiiiiiiiiiiiiiiMiiiiiiitiiiiiiiiiiiiiiiiiiiiuiiiiiiiiniiuiniiiiiiuiuiiniiiiiiiinniiinniiiniiiinniiiuiiimiiinmHtiiiimnnniuimtmHNKinfl This is not a Lignite but a Superior Gas Coal which the Country needs and is compelled to import. DIRECTORS: ROBERT BELL, Esq., Lyttelton Times, Ltd., Christchurch. C. C. DAVIS, Esq., N.Z, Glue Co., Ltd., Christchurch. FRANK HOGARTH. Esq., Retired Timber Merchant, Wellington. SIDNEY KIRKCALbIB, Esq., Kirkcaldie & Stains, Ltd., Wellington. J. M. A. ILOTT, Esq., J. Ilott, Ltd., Wellington. ALLAN SMITH, Esq., Griffin & Smith, Ltd., Greymouth. JOSEPH CATCHPOLE, Esq. (Chairman of Directors, Pukemiro Collieries, Ltd.), Auckland. Who will hold office until the Statutory Meeting when Directors will be elected. BANKERS; THE BANK OF NEW ZEALAND. •- SOLICITORS; Messrs. HARPER. PASCOE, BUCHANAN & UPHAM, Christchurch*. INTERIM SECRETARY; F. A. HICKMAN, A.I.A. (N.Z.), A.P.A., Oxford Ter., Christchurch. AUDITORS: Messrs. STEWART, BECKETT & Co., Hereford St., Christchurch Objects. The primary object of the Company is to acquire and work coal mining leases comprising 2650 acres in the Grey Valley, situated on the Midland Main Trunk Railway, 6 miles from Greymouth, containing a proved area of 4,000,000 tons of HARD COAL. Winning the When the Dobson property Coal. was purchased by the present owners, there Was a difference of expert opinion as to the best way to open the mine. On the one hand a shaft scheme involving £IOO,OOO was advocated; while on the other hand a scheme costing £25,000 to lengthen the existing incline drive was favoured. As the latter project had the advantage of bringing into practical use the whole of the development work of the original Dobson Coy ; (an expenditure of approximately £40,000), the owners employed the Government Diamond Drill on the. property, and were successful in locating near the drivehead, 115 feet of coal at a depth of only 292 feet. This discovery secured unanimity of opinion in favour of extending the incline drive. MR. E. S. WIGHT, Managing Director of PUKEMIRO COLLIERIES, Auckland, who previously reported doubtfully on the property, then commented as follows: “I visited the field in December, 1921, when the bore was being put down from the face of the dip drive. Unfortunately, this did not penetrate a payable seam, and as the data obtainable at that time was insufficient I was unable to give a favourable report respecting the development of the field. Undeniably “The information obtained a Payable from the bores put down since Quantity. my visit proves undeniably a **■ ~ payable quantity of coal, and fully warrants the capital expenditure required for development.” “ The location of the property, as it, is alongside the main line of railway from Greymouth to Christchurch, and within a distance of the former shipping port involving only the minimum railage, makes the position a unique one, and does not necessitate any branch railway line or lengthy tramway so commonly necessary to connect colliery with a main line of railway.” , , , “ The analysis of the coal shows it to be very suitable for smithy and gas-making purposes.” Method of “A large expenditure has Operating- already been made in the dip ‘ drive towards the seam. I understand it is the intention to continue this drive until the seam is struck, and ultimately draw the coal from this outlet, which will land it within a few chains of the company’s bins and railway siding. This is quite a feasible project, and should prove a successful method of operating the mine.” “Having regard to the geographical position of the property, the area of coal proved, the thickness of seam, the quality of the coal, and the scarcity of this class of coal in New Zealand, I have every confidence that with careful and efficient management the mining of this particular area will prove a remunerative investment to those Interested.” —E. S. Wight. Gas Coal. New Zealand is short of gas- “ producing coals. The four leading concerns of -the Dominion consume about 500 tons per day, for seven days in the week, and there are 38 smaller Gas Companies consuming considerable quantities. Prom 1911 to 1914 the Shortage. importation of HARD COAL into New Zealand averaged 301,000 tons per year. Prom 1914 to 1918 the average had risen to 340,000. In the last three years the figures are as follows: — Imports, 1921 >*.< 822,459 tons Imports, 1922 ....: 501,478 tons Imports, 1923 .... 690,000 tons These imports were practically alb for special purposes, for which the coal from this Company’s property will be highly suitable. Mr, Thomas Patterson, C.E., Quality. F.G.S., a member of the well ” known Warrington Laboratories, Palmyra Square, Warrington, England, reported on the samples sent to him some years ago as follows: — “We have carefully tested the two samples of your Greymouth coal forwarded to us through your London Agents, to which we have forwarded the results.” “They are marvellous samples of gasyielding coals, No. 2 giving the unprecedented weight of 865.90 lbs. in sperm candles to the ton of coal, and No. 1, 752,81 lbs,” Mr. J, D. Gillies, Engineer to Grey Harbour Board, says:— “The seam appears to have a dip to the south-west varying from 1 in 3 to 1 in 45. The coal is of excellent quality, the analysis shewing it to be practically the same as the old Brunner and Coalpitheath coals, admitted to be the best smithy and gas coal in in the Dominion, and it is also a good steam and household coal.” Consideration, The property is now offered to the public for £32,000, to be satisfied by the issue of 24,000 shares of £1 fully paid up, the new Company to assume responsibility for an overdraft of £B,OOO. Value In addition to the Coal Lease, Transferred, this consideration acquires plant, buildings, and the value of usesful work done, which cost the previous owners £38,000. The buildings include well-equipped workshops, and a new 7roomed house for the Manager, in addition to the general mine buildings; also pumps and railway siding, etc., referred to in Mr. Leitch’s report, on page 17 of the Prospectus. THE VENDORS HAVE SPENT MONEY ON PROVING THE PROPERTY BY BORING, THUS AVOIDING UNCERTAINTY. Manager. Additional land adjoining the original lease has been acquired, and the property has been thoroughly reported on by competent experts. Mr. Walter Leitch, M.1.M.E., N.Z., who is to manage the mine, has employed labour on the property for the last few months. The dip drive has been pumped out, and everything found to be in a good conditon underground. Tenders have been advertised for the continuation of the dip drive, and everything is in readiness for a speedy development. For a further expenditure of £25,000 it is estimated that coal will be won from the mine within 6 to 8 months from the date of registration of the Company. Power The Greymouth Power Board has Boar(iT~ recently secured an adjacent site on which to erect a steam plant to generate electricity for Greymouth and surrounding districts. The whole of the power necessary for the mining operations of the Company should be available for this plant at an early date, and the Power Board should be in a position to take a considerable quantity of coal from the Company. Should the 76,000 contributing ** shares be sold, and paid to 10/-, then the capital in which dividends shall be calculated will be £38,000, plus 24,000 fully paid shares, making a total paid up capital of £62,000. On page 18 of the prospectus, Mr. Leitch estimates an output of 100,000 tons per annum, which should yield £23,000 profit. This estimate is conservatively based on prices below those ruling to-day. The most convincing point on value is the fact that members of the owning Syndicate are not receiving any cash consideration, but are, in many cases, putting more cash in by subscribing for contributing shares in the same way as any member of the public subscribes. Broadly, their original investment purchased and developed the property. The capital! now being raised (£38,000) is to work the mine as now definitely proved. The customers for this class of industrial coal will be buyers of wholesale quantities,, This is a point that should be specially noted. Thv railway freight from Dobson to Lyttelton is 14s. Bd. per ton (to Christchurch is 14s. 7d.) The cost of coal on trucks at; Dobson is estimated by Mr. Leitch on page 17 of the prospectus at 10s. lOd. per ton, that is 255. 6d. per ton at Lyttelton. Applications for shares can be made through any Sharebroker affiliated with the N.Z. Stock Exchange, or at the Bank of New Zealand. Organising Brokers: Witt. ANDERSON, Christchurch; A. M. ADAMS, Wellington. Auckland Representatives: HENDRY & HAY, Stock Exchange Building, Queen Street. Dunedin Representatives: HAMILTON & DAVIDSON, Stock Exchange Buildings, Princes Street.

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