MINING ACTION

Otago Daily Times, Issue 22608, 27 June 1935, Page 10

MINING ACTION

MOLYNEUX DREDGING COMPANY WARDEN REFUSES FORFEITURE A mining action of some considerable interest, involving the titles of a company formed with English capital for the purpose of dredging a section of the Molyneux River, was held before the warden, Mr H. J. Dixon. S.M., at Clyde in March last. Decrees of forfeiture were sought by J. S. Burrows in respect to two of three claims held by the Molyneux Gold Dredging Company, Ltd., on the Molyneux River extending from Alexandra to some distance above Clyde. The Molyneux Gold Dredging Company, Ltd., was registered in England with a capital of £250,000. In the form of £84,000 fully-paid shares, it paid for three claims on the river extending over about 19 miles, and also for certain other properties. In addition it paid £12,000 to the Otago Central Electric Power Board with a view to securing electrical energy to work the dredge. The company is further understood to have entered into contracts for the construction of a dredge at a cost of £40,000, and it is estimated that it will cost an additional £30,000 to erect the dredge on the river. The total area of the claims is about 900 acres, and the area in dispute amounted to about 520 acres. The claims were pegged upwards of two years ago, and in order to protect them special legislation was passed by the Parliament of New Zealand in November of last year The warden, after reviewing the evidence and the law points raised, held that there had been forfeiture, but in view of special circumstances relied on by defendant company, he exercised his discretion by inflicting a fine in lieu of forfeiting the licenses. The total fines and costs in respect of the two licenses amounted to £3B 9s.

At the hearing Mr F. B. Adams, with Mr W. A. Harlow, of Clyde, appeared for the defendant company, and Mr J. C. Parcell, of Cromwell, for the applicant.