WAITAHU GOLD COMPANY

Otago Daily Times, Issue 26214, 26 July 1946, Page 8

WAITAHU GOLD COMPANY

INCREASE OF CAPITAL

At a special meeting of shareholders of the Waitahu Gold Mining Company last night, a decision was reached to. increase the share capital of the company from £40.000 to £45,000, by the creation of 5000 10 per cent, cumulative preference shares of £1 each. The resolution was moved by the chairman of directors. Mr J. R. Fairbairn, who said that the company had been handicapped during the war years by increasing costs and labour problems, and the directors had been forced to exercise the strictest economy. Mining operations had eventually ceased in 1942. In view of the position in which the company found itself, the only alternatives to be faced were either to wind up or to adopt the resolution now proposed. Mr Fairbairn said the company had secured control of . Flowers Creek, an area adjacent to the Waitahu claim, which, if supplied with the necessary water, showed undoubted potentialities. Some time ago the claim had been taken over by a party of miners working on a tribute basis, and work had been undertaken so that mining operations could be commenced on the Flowers Creek area. According to a telegram received from the leader of the party, it was hoped that sluicing would begin at the end of the month. He had every reason to believe that the reports on the prospects justified the support of the shareholders.

The resolution was seconded by Mr B. H. Nees, who said that support of the motion was the only means to save the interests of the company. Mr Nees mentioned the high wages late on the West Coast, and said that the terms of the tribute party were particularly favourable to the company. After questions had been answered on' the prospects of the claim and the method of share distribution, the resolution was carried.