KAWARAU GOLD MINING COMPANY.

Hokitika Guardian, 21 January 1928, Page 4

KAWARAU GOLD MINING COMPANY.

A AIALG AAf ATION PR OPOSA LS

111 their annual report to be presented to shareholders of the Kawarau Gold Alining Company in Dunedin 011 Friday next, the directors refer to the suggestion which had been made that, steps should be taken to remove the rock obstructions in the river bed, and state that: —

“ The general tone of the reports obtained indicated that the engineers were not optimistic as to the benefits that would result from any practical attempt to remove the obstructions from the river, and the apathy of the claim-holders in the matter appeared to confirm this view.

“ During the season’s operations little was done on the majority of. the claims other than prospecting. On

only three claims were there won any considerable quantity oi gold, the hugest return being -id ounces from claim 38 and 2d ounces from claim 43. Ihe total quantity of gold won during the 1927 season (from June 15 to August 15), from 17 claims in all, was "So/. 1 Idwt 22g5.. with a total value of £302 11s sd.

" As a result of a mooting ot claimholders held io Dunedin early in October, a deputation of three, representing the holders ot 100 claims, int.ol- - the directors ol the company and discussed with them a scheme tor the amalgamation of all parties interested in the Kawarau. It was agreed 1 1 1:1 l tile time Intel arrived, tor closer co-operation between the chiim-holders and the parent company. The lia.-is of the amalgamation scheme submitted was the amount of cash contributed to the venture by the parent company and the claim-holders respectively (that is, in the case of the company, its paid-up capital ; in the case of the claim-hold-ers. the payments made under the terms ot their leases), and Doth the parent company and the claim-holders would acquire an interest in the now amalgamated company equivalent respectively to these amounts. At the same time claim-liolders would assume on their shares in the new amalgamated company a liability equal to their present liability to the parent company under their leases. The funds that would thus become available would consist of the balance of the deposit of £lO.OOt) with the Dublin Trustee after payment of the Kawarau Company’s debts and the uncalled capital on the shares held by claim-holders. It would be the object of the directors of the new company to obtain trom either Great Britain or America, the services of a really eminent engineer, and upon his reuort would depend the luture policy of the company. Should a favourable report be received anil r. method of operation recommended, the necessary capital could doubtless he obtained.

“The directors of this company considered that the basis of amalgamation that'has been suggested was a reasonnlie one. and they agreed to recommend shareholders to adopt the scheme. On the other hand, the representatives of the claim-holders who were present at tlie meeting undertook to recommend that the scheme he accepted Vy all claim-holders. At. the present time steps are being taken to finalise the scheme and to have it submitted bnthe consideration and approval ol all interested parties.” The principal items ol the balancesheet. as at September du are as tolInw : LIABILITIES. £ Baid-up capital Ut.tD.j Share premiums 9,Si < Loan , ' l '' s Sundry creditors 1 1* 1 ASSETS. C cash Sundry debtors Deposit with Public Trustee 10,2hd Alining, right..-, etc 10,Do The debit to profit and loss account stands at £453-1. '