BOUNDARY CREEK GOLD DREDGING COMPANY.

Otago Witness, Issue 2504, 19 March 1902, Page 24

BOUNDARY CREEK GOLD DREDGING COMPANY.

As the finances of the Boundaiy Creek Gold Dicdgnig Company aio not in as satisfactory a position as could be desired, the fallowing circular is beirg issued to shareholder by the ducctois — " Yom directors having tned cve'y means 111 their powei to raise a sum of £500 to pay oft" th ■ unsecured liabilities of the company, and to "cuvc the mm of about £'200 to give the (hedge a trial a'^d having failed, it has been decided by your directors to ask shareholders to advance on loan Is per shaie on the following terms—namely, that thy caid Is per share borrowed shall be refunded fiom profits of the company with Is pei '•hare as a consideration for the loan of same, making 2' per share, and that a second v oitgagc be gi\cn to tru-lecs to secuie tlis repayment of the? said 2a in the event of the claim not proving payable. Your duectors would veiy '-trongly urge on shareholders the necessity of coming to the support of the cempany at this junctuie, and so seeming a chance of saving their piopeity. Theie i° a first mortgage of £800 already "existing, so that the total indebtedness of the company after the, Wn o: £500 would be £1300. Shureholdeis will therefoie <-cc that this loan will be amply secured by the second mortgage. The 1-idclei lias been altered to diodge lo a depth that vail fully woik the giound, smO everjtlang is now leady to <,tait work n= soon as the nvor poinnts. Unles-j '-harcliolders respond to this appeal the duectors sec no othei couise but liquidation, which will mean a total loss of the shareholders' money, this would bd extipmely unfortunate, ad the claim :5: 5 considered rich, and the directors beli'.ve that good return will be ol tamed fiom the commencement of operatiohs. Ao the list will be closc-d on the 24th in«t., as early leply is requested The amount advanced need not necessarily be hnnUd to the number of shares held."

pears to be very reasonable, and now that shareholders have gone to tha oxtenTof subscribing £1 per share, it ought to be worth a_n effort to. advance the small sum asked for above, in order to save the property, as in the event of the money not being forthcoming there appears to be" no other course than liquidation. The claim, which is situated between the Monte Chiisto and Halfway House properties, is highly though of by the residents in the district. When work was commenced good wash v.as struck at a depth of 36ft, but as the ladder was too short to allow the dredge to work at a greater depth the claim was not bottomed, but the diedgemaster was confident that if the ladder were lengthened a few feet he could get good gold. The ladder has now been lengthened to allow the dredge to work to 50ft, which is consuleicd sufficient for any part of the claim. If the sura asked for is subscribed portion of it will be devoted to paying off existing liabilities, after which about £200 will be available for working expenses. The capital of the cempany will not be increased by this arrangement. The directors are confident that the dredge will strike good gold as soon as operatirns are resumed, which will probably be at an early date, although a start will not be made until there is a chance of a steady run, so that the finances of the company may be conserved to the greatest extent.