ORWELL CREEK GOLD DREDGING COMPANY.

Greymouth Evening Star, Volume XXXI, 24 July 1901, Page 4

ORWELL CREEK GOLD DREDGING COMPANY.

A special meeting of the Orwell Creek .Gold Dredging Company was held last Tuesday at Dunedin in order that the shareholders night have an opportunity of discussing with the directors the financial position of the company. Mr A. 11. Bridge (chairman of directors) presided, and there wore about a dozen shareholders present.

The Chairman read the circular which had been issued to the shareholders explaining the necessity of raising £9OO additional capital. The circular set forth, inter alia, the following; “ The directors of the Orwell Creek Company find that by the time the dredge is completed, which will be in about five weeks from date, the available capital will not be sufficient to provide for the total cost of the dredge and all preliminary work in connection with the company’s claim, and after providing for two months’ working expenses the deficiency will be about £9OO. To meet this deficiency and to provide funds to work the dredge until the ground is opened up, your directors have deemed it advisable, instead Tof increasing the capital, to issue debentures to the extent of £IOOO, and offer the same to shareholders* giving as security a first mortgage over the dredge and claim and other assets of the company. The debentures will bear interest at the rate of 15 per cent, per annum with a currency of two years, but will be redeemable by drawings at such times as may be decided on by the directors. Debentures will be issued for £5, £lO, or any larger sum up to £100.” In reply ton question put by one of (ho shareholders, tho Chairman said that tho deficiency was made up of what was duo on the erection contract, and what would be required to pay two months’ working expenses. Mr Melville said the directors wished to start entirely free of debt, and have £3OO in band. The Chairman said that the directors had considered various ways of raising tho additional capital, and thought that debentures were the best. The shareholders, of course, would have the first right of taking up tho debentures. If the shareholders did not look after their own interests in this respect the directors would have to place tho debentures outside. In reply to another Sharehocler.' Tho Chairman said that the engineer had told them tha 1 } ho did not think there would ba any difficulty in working the

claim. Another engineer and the local director were of the dime opinion. The dam was exceptionally large. Mr Marshall said that the dredge would start where the other party knocked off, and they bottomed at 60ft. The dredge was built to work at that depth. The claim had "been .-urveyed, and 65ft was the greatest depth Mr Siigo said that tho dredge had been specially designed to suit tho ground. The engineer was satisfied that the ground could be worked without any difficulty,

In reply to Mr Columb, the Chairman said than the dredge was likely to start in about five weeks. The Chairman said that the directors did not wish to mortgage the dredge and claim outside of the shareholders, and it was for the shareholders to look after their own iiitcsosts and take up the debentures. It was resolved on the motion of Mr Mitchell, seconded by Mr Marshall, that the lime for the applications for debentures close on the 31st hist., and that a circular to that effect bo sent out to sharcholdc's

A good number of applications were received In the room, after which tho proceedingc closed.