THE AHAURA RIVER GOLD DREDGING COMPANY (LIMITED.)

Greymouth Evening Star, Volume XXXI, 1 August 1901, Page 2

THE AHAURA RIVER GOLD DREDGING COMPANY (LIMITED.)

The following circular has been issued to tbe shareholders of the above company, and we understand the necessary guarantees are being largely signed:—

‘■The aew issue of shares not having been taken up by the shareholders, ana the funds of the company being exhausted the affairs of the company have been brought to a crisis. "When the now issue of 6000 additional shares was made the directors anticipated that shareholders would see the necessity of protecting their own interests, and that each would apply for his proportion of shares. In this expectation the directors have been much disappointed, only 2155 shares having been applied for (including full applications from the directors), on account of which .£2lB 15s has been paid. The final payments on the companys contracts are now duo. The contractor for the machinery has registered a lien under ‘ The Contractors and Workmen’s Lien Act, 1898,’ and is making an application to the Supreme Court for authority to sell the dredge. “ The position, therefore, is now most critical; aud if shareholders fail to tvspond to this final appeal of the directors there will he no alternative but liquids* lion, which will probably mean the Sacrifice of the wholo property (dredge, free* hold and claim) and tbe loss of all the capital.

‘‘The mm of £IOOO is required to clear off all liabilities. This sum has been offered on mortgage of the dredge and claim, with the personal (joint and several) guarantee of the directors. This guarantee of the directors will not give. They are, however, quite willing to join with, the members in a guarantee fund, which will meet the difficulty. ‘‘The sum borrowed will be secured by a first mortgage of the company’* property, the shareholders’ guarantee coming in as a collateral security for the ultimate loss. The guarantee will thue not be called upon until the mortgage security has been exhausted by sale of the dredge claim, and freeholds (which have cost over £7000) The risk of loss to the gnar- • antors is therefore trifling.

“if you wish to save the property kindly fill in such sum as you will guarantee, sign, and return the annexed undertaking, which will only be used provided the total sum thus guaranteed amounts tp £SOO.

*• If liquidation is to be arrested money must bo provided before, the 31st inst; immediate reply is therefore necessary.— By order of the board.