MOUNT MORGAN, LTD.

Evening Post, Volume CXXV, Issue 22, 27 January 1938, Page 12

MOUNT MORGAN, LTD.

INCREASE IN CAPITAL

NEW PREFERENCE ISSUE

An. official announcement has been made by the directors of Mount Morgan, Limited (Queensland) that an extraordinary meeting will be held on February 15 to submit to shareholders special resolutions to increase the capital of the company by £200,000 by the creation of 200,000 8 per cent, redeemable cumulative preference shares of £1 each. Unofficial reports have recently been circulated and the shares have been active on New Zealand Exchanges. The proposed issue is for the purpose of financing the installation of necessary plant and equipment to carry on smelting<at the company's mine at an early date. Provided shareholders ap.prove the recommendation of the directors the shares will be offered for subscription in terms of' a prospectus that is being prepared. The construction •of the smelting plant should be a great benefit to the company, as the present arrangement requires the shipping of the company's copper concentrates. to the United States for smelting. The uncertainty of shipping arrangements was responsible for the passing of the usual quarterly dividend in December, as the last shipment was made In October and no more were expected until the end o/March. It was .therefore deemed prudent to conserve cash resources until the completion of pending arrangements, which, it was ' hoped, would ensure regular realisation of concentrates. It was anticipated'that the question of the payment of an interim dividend would be considered in March.."-- ;,■'•;, • -Jhe nominal, capital of the company is^£ 350,000, in 2,800,000 shares of 2s 6d each, of which 2,223,179 were issued at June- 30, 1937.