NOKOMAI GOLD MINING COMPANY

Otago Daily Times, Issue 22422, 17 November 1934, Page 8

NOKOMAI GOLD MINING COMPANY

SALE OF ASSETS PURCHASED BY ENGLISH COMPANY An extraordinary general meeting of the shax-eholders in the Nokomai Gold Mining Company was held in the Chamber of Commerce rooms lest night to receive the report from the directors of the sale and the terras thereof of the company’s assets to the Nokomai Gold Dredging Company, London, and to confirm the sale. Mr F. Y. Milnes occupied the chair in the unavoidable absence of the chairman (Mr H. L. Gill). The chairman read a statement which had been prepared by Mr Gill:— “ The directors have called the shareholders together to report to them the sale of the company’s undertaking and assets to the Nokomai Gobi Dredging Company, Ltd., London. Shareholders will remember that on June 18, 1934, the directors placed before them for-their approval the terms of an option which was given to Mi- L. J. Stevens, of Auckland, by which the latter became entitled to purchase the company’s assets for the price of £65,000. The material terms in connection with such option are, no doubt, familiar to shareholders, viz.: £39,000 was to be paid in cash and £20,000 iu fully-paid-up shares in the company proposed to be formed, to acquire the said assets. The option was given for a period to expire on September 1, 1934, and the . consideration paid for the same was £250. Before the expiration of the option, at the request of Mr L. J. Stevens, an extension was granted until October 1, 1934, and the price paid for such extension was £4OO. Such amended option provided that if an extension thereafter was desired until November 1, 1934, an additional sum of £IOO was to be paid. These sums were all paid, and flji extension was granted at the request of the option holder until November 1, 1934. The next incident was a telephonic communication from London to Mr J. Fletcher- that the London company had been registered and that the option was to be taken up. Nothing official, however, was received from the company, although in the. daily papers there appeared a Press Association cablegram to the effect that the London Company had been registered. Almost immediately following this announcement a cablegram was received that matters had been held up on account of certain information received by the provisional directors in London to the effect that _ the possibilities of the claim as a mining proposition had been questioned, and accordingly matters were held up. Following this a request was made from London that a mining engineer nominated by the London company should be permitted to inspect and report direct to London upon the claim. The directors agreed to this, but are unaware of the nature of the report.; On the 23rd day of October, 1934, a meeting was held between the directors and Messrs Fletcher, Newbrugh, and M’Donald, Mr M‘Donald, of Christchurch, purporting to represent the London company. At that meeting it became clear to the directors that there was little chance of the option being taken up unless the company was prepared to accept a much smaller cash payment. A proposal was then submitted to the board of directors, which is as follows: —£15,000 to be paid' in gash by the Nokomai Gold Dtedging Company (London) within seven days; the New Zealand Company to take 500,000 fully paidup shares (paid to 2s) issued by the new company. In these respects the directors were asked to modify the terms of the option. In consideration of ' the company agreeing to this, Mr Newbrugh himself undertook to pay to the company £2OOB, which latter sum has faden received. The directors would have liked to submit these proposals to the shareholders for their approval before accepting them, but as there was not sufficient time before the option expired to call the shareholders together in accordance with the articles of association of the company, they felt it was their duty to, accept the same on behalf of the company. “ 1 may mention that from the facts communicated to your directors they .were satisfied that if the pffer had not been at once accepted, all negotiations ‘would have been off, and the company would have been in the position of starting de novo with heavy liabilities, with a , possible expensive Supreme Court action, and the necessity of completely revising the method of working the claim, which in itself must of necessity have entailed borrowing by the issue of debentures for a large sum of money. In these circumstances, your directors felt that the offer should be accepted, and accordingly did so. It is worthy of mention that on the actual price in comparison with the option, the new offer is £67,008, as against £65,000. “ The deeds of complete release from the Vulcan Steel Construction Company, Ltd., and Industries, Ltd., from all claims those respective companies might have against your company have now been executed, and are in .the hands of the directors. Three thousand pounds has also been received on account of the purchase money, and the balance of £12,000 is expected almost immediately. The position is that the company has now paid all its debts from the moneys received, and its liabilities to the Vulcan Steel Construction Company, Ltd., and Industries, Ltd., have, been eliminated by' the said deeds of release. “ Shareholders will receive as soon as’ practicable Is per share in cash, and the directors propose on behalf of your company to hold the said 500,000 vendors’ shares for such time as in their discretion they think fit. The directors accordingly ask shareholders to leave such matters entirely to the board. They feel, after careful consideration, that these proposals are in the best interests of the .company and of the shareholders. I might also mention that at the request of the Auckland solicitors for the London company the directors of your company have agreed not to divide the balance of the cash held by the company amongst its shareholders until the transfers of the mining properties have been completed and registered for a period not exceeding three months. It is needless to say that the directors since they last met the shareholders have experienced much anxiety and have devoted a tremendous amount of time to the company’s affairs, and they trust that the shareholders whole-heartedly approve of their decisions “As to the directors’ plan regarding the future holding of these shares, they feel that the matter should be left entirely in their discretion, and they can assure the shareholders that their sole concern is the latters’ interests. They are firmly of the opinion that as a dredging proposition this property is an outstanding one and that, properly and efficiently worked, it will prove a very profitable proposition to all concerned. For these reasons they are optimistic as to the success_ of the new company in working this claim, and that the shares will be much sought after. They propose also to allow the company’s shareholding to remain on the London register, as in doing so the company will obtain the benefit of the high exchange rate.” Mr R. Cnddie moved that the meeting confirm the notion of the directors for completing the sale of the assets to the London company. In answer to questions it was staled that the capital of the English company was £450,000 and that it was understood that two dredges were to be placed on the property. It was stated that the local company would got all the cash the English company was providing, and was getting something additional. All the other vendors were taking fully paid up shares for their interest. The chairman stated the purchase money would he in New Zealand currency. Air Newbrugh said the English company must be permitted to spend the money in the interests of the shareholders us a whole. Tile English company would investigate the property and would then proceed to adopt a poiiov for working it. The chairman said that the English would have more money at stake than the local shareholders, and it could be recognised that the purchasers would do their best to make a success of the venture.

Me Newbrugh said that the cost of cablegrams to London in connection with the negotiations came to £I3OO and that they were charged Od per second for telephonic conversations. Mr Newbrugh said that the financers at Home had liad to be thoroughly satisfied, and that the negotiations had lasted over six months. While the London people should be satisfied with the proposition, he thought that the shareholders had also something to be thankful for. lie was of

opinion that the London people intended to put a dredge costing at least six figures, and it might put. on two. Mr J. S. Sinclair said that until the New Zealand company wont into liquidation he saw no reason why shareholders could not dispose of their shares in the New Zealand company. Mr R. G. Hudson moved—“ That the directors be authorised to hold the 500,000 vendors’ fully-rjaid-up shares for such time as in their discretion they consider necessary.” The motion was carried. Mr Sinclair made a comprehensive statement regarding what the directors had considered advisable, and a motion congratulating them on their work and also Mr Kum Poy (the secretary) was carried by acclamation. BRITISH GOODS IN MOSCOW IMPORTANT TRADE DEVELOPMENT. An important development in internal Soviet trading is presaged by the news that British goods arc lacing sold in the Moscow shops for roubles. The Moscow correspondent of L. J. Duflou, Ltd., Wellington, refers to this fact in a recent letter. The quality of Soviet goods has been improving in recent months, he says, but it is not yet possible to say that in every respect it is as good as that of British goods. Shoes, cotton goods, woollens, and other, goods manufactured in Great Britain will undoubtedly commend themselves to the Russian shopper, even though he has to pay a slightly higher price for them. This is virtually the first time since the revolution that British goods have been purchasable in Sovitft shops. This fact opens up a new prospect for Anglo-Soviet trade. Hitherto Soviet purchases in England have been limited to engineering products and heavy industry needs, together with raw material, such as rubber, cte., from the colonies. If Soviet Russia’s department stores are now going to sell British goods we shall sde a great revival of interest in this market on the part of the boot and shoe trade, the hosiery trade, the woollen trade, and others, which, for nearly 20 years, have counted the Soviet market as being lost. Observers in the U.S.S.R. have noted for some time past a steady tendency on the part of the Soviet rouble to rise in value. During this year considerable changes have taken place—■ partly due to the fact that the great increase in the quantity of goods for sale lias caused its value to rise steadily month by month, and partly owing to the financial internal policy which has been pursued by the Soviet Commissariat of Finance.

BRITISH PRICES SOME GROUPS RECOVER. Three of the classified groups of commodities in the Economist index of British wholesale prices showed advances during the fortnight ended October 24. The textile group index number rose by 0.6 after falling successively in each of the last three periods. That of the mineral group rose by 1.4 to the highest level since July, and that of the miscellaneous group,rose by 1.3 to the level of late September. This group includes .rubber, timber and oils. . .... Cereals and meat were again lower, their index number having fallen substantially since the end of August. The latest reduction was 1.7. “Other food products,” including tea, coffee, and sugar, showed a reduction of only 0.2, and the complete index number was steady. MARCUS CLARK. LTD. Marcus Clark and Co., Ltd., a retail trading company in Sydney, reports a net profit of £11,781 for the year ended August 4, compared with losses of £37,721 the previous year and £44,130 in 1931-32. No dividend is recommended, and the profit reduces the debit forward to £17,102. Dividends on preference shares have accrued since August 15, 1930. Trading profits wore £53.279, compared with £7054 in the previous year. WOOL FOR JAPAN , * Mr H. Hill, president of the New Zealand Woo! Buyers’ Association, who ha* been studying the Japanese wool manufacturing industry, said, on arrival at Sydney by the Changte recently, that the Japanese people were wearing more woollen clothing than before, and that the future prq-sDcets for sale of Australian and New Zealand wool to Japan were bright. Mr Hill said that Japan was troubled because she was buying much more from Australia than Australia was buying from Japan. She hoped for • more favourable trade balance. ANTHONY HORDERN. LTD. Anthony Hordern, Ltd., of Sydney, has declared a dividend at the rate of 74 per cent, per annum on its preference share* for the half-year ended August 30,' 1834, payable on November 16.