KOHINOOR DREDGING COMPANY.

Greymouth Evening Star, Volume XXXI, 28 November 1901, Page 4

KOHINOOR DREDGING COMPANY.

Tlie secretary Las issued the following circular : “ The directors Lave instructed me to advise sLareLolders as to tLe financial position of tLc Company and tLe necessity of raising additional capital to meet liabilities, also as to the principal causes wLicL Lave necessitated tliis course. WLen tLe Company’s prospectus was issued it was well known among tLe miners around Ross tha* tbe old KoLinoor Company struck bottom in tLeir shaft at about 38ft and that rich wash was obtained on that bottom. In view of these facts it w r as not deemed necessary at that time to boro the claim as it was considered that the depth of the old shaft proved the depth to which a dredge would have to dig. However, in the early part of this year the Keystone Boring plant was engaged in boring claims lower down the Mikonui River and such great depth was obtained there that two or three claims were condemned as unsuitable for dredging owing to this fact. Your directors therefore decided to engage the Keystone plant to bore the claim with the view of ascertaining beyond question the depth of ground we have to deal with. The result of this boring has already been communicated to shareholders. It proved that the bottom at 38ft in the old shaft was a false one, and that much richer gold-bearing wash existed at depths down to 66 ft. The boring was systematically carried out over the great portion of the claim, and although the expense (nearly

£400) was your directors are certain it was fully justified, as Mr Maynard warrants us in believing that the claim is an exceedingly rich one. Prior to 'the boring, your directors had entered Into contracts for the construction of a dredge suitable for dealing with ground about 38ft deep, and this had been well advanced before the boring was commenced. The much greater depths found necessitated alterations in the plans by increasing the length of the ladder, involving considerable additional expenditure. The present dredge when completed will not be ab e to deal with more than about one-third of the claim, and it is intended to use it to dredge Redman’s Creek portion, which will provide ample work for this machine for many years. The boring operations show that this ground is highly payable. The deeper ground along the Mikonui River will require a much more powerful machine, and when the returns of the present dredge prove satisfactory, your directors intend laying before you proposals for the construction of a larger dredge. The dredge when completed will cost £12,000, thus leaving a deficiency of £2,500 which the directors propose to raise in one or other of the following methods : 1. By the issue of 2,500 ordinary £1 shares. These shares to participate equally with the present shares in dividends. 2. By the issue of 500 debentures of £5 each, carrying interest at the rate of 15 per centum per annum, and repayable at the option of directors. Applications from present shareholders to have priority pro rata to their present holdings. 3. By the issue of 2,500 preference shares carrying preference dividends at the rate of 20 per cent per annum. Such shares to participate in ordinary dividends equally with ordinary shares and to become ordinary shares after the payment of five annual preference dividends.

The work of erecting the machinery is pushed on with the utmost vigour and it it is anticipated that the should be completed and at work in January.