Page 7 Advertisements Column 3

Taranaki Daily News, 3 July 1920, Page 7

ABRIDGED PROSPECTUS OF The Onakaka Iron and Steel Company, Ltd {To be incorporated under "The Companies' Act, 1908," as a Company limited by Shares.) CAPITAL - - £BO,OOO , p Divided into 80,000 Shares of £1 each. , i ■F ! v, 3D,000 Shares to be issued as fully paid-up as consideration for plant and a 55 years' lease % of the Iron Ore Deposit, thus leaving the Subscription for Working Capital. The Company now offers for subscription at par 50,0Q0 Shares upon the following terms:— 2/6 per Share on Application 2/6 per Share on Allotment and the balance in calls not exceeding 2s per Share at intervals of not less than one calendar month. DIRECTORS. GEORGE ERASER, of Auckland, Engineer. CHARLES GOODSON, of Hawera, Farmer. JOHN AMBROSK HESKETT, of New Plymouth, Metallurgical Engineer. ROBERT JAMES DEARE, of New Plymouth, Boot Importer. GEORGE LOMAS, of New Plymouth, Quarry and Mining Engineer. JOHN LEGGO, of Nelson, Mining and Explosive Engineer. GEORGE ALLEN LEE, of New Plymouth, Civil Engineer MASON CHAMBERS, of Havelock North, Sheepfarmer. JOHN CHAMBERS, of Havelock North, Sheepfarmer. ROBERT DONALD DOUGLAS McLEAN, of Napier, Hunholder. ! THOMAS A. TURNBULL, of Nelson, Mining Engineer. The above-named Directors will hold office until the statutory meeting of Shareholders, which milst 1)8 held not le ss than one month nor more than three months from the time when the Company becomes entitled to commence business. At the statutory meeting the sa id Directors will retire, but they or anyof them may be reappointed. BANKERS: THE UNION BANK OP AUSTRALIA, LIMITED. SOLICITORS: JOVETT, QUILLIAM & HUTCHEN, New Plymouth. BROKERS: DUNCAN McALLUM, New Plymouth. GEORGE HENRY BUGKERIDGE, Hawera. HOADLEY, SON & STEWART, Limited, Napier. SECRETARY (PRO TEM): tiUNCAN McALLUM, Egmont Street, New Plymouth. AUDITOR: (To be appointed.) The Company is being formed for the purpose of acquiring from the New Zealand) Iron-Ore Smelting-and Manufacturing. Company, Limited, its plant for the manufacture of pig-iron and steel, removing the same to the locality known as "Onakaka,'"in the Nelson Provincial District, and there manufacturing iron and steel from limonite iron ore, which is to be found in abundance in the neighborhood. The Company has agreed to take an underlease for a term of fifty-five years of a leasehold property at or near Onakaka, belonging 'to the above-named Thomas A. Turnbull. This property contains 870 acres, and the Company hopes to obtain mining rights over certain adjoining premises. The iron-ore deposits ares on Mr. Turnbull's leasehold, about three miles from the beach. According to Dr. Marshall the ore contains on an average 49.6 per cent of iron. There is plenty of limestone quite close to the ore. If charcoal be the fuel used—and charcoal is an excellent fuel for a small furnace with an output not exceeding thirty tons a: day—this also can be obtained in any quantity from the timber on the property. Thus in the Onakaka field we find all the "raw material necessary for smelting, and it should be possible to smelt the ore cheaply the general rise in prices and wages. There is deep water off the beach, and the roadstead is sheltered from southerly gales. Options have been secured over areas suitable respectively for a furnace site, for storage, and for waterside work. As the ironfield lies high above sea-level, there will be no need to haul the ore to the furnace; it can be carried thither—easily, cheaply, and at small expense—by means of an aerial tramwayThe Company proposes in the first instance to supply no more than the local demand for pigiron. This can be met by the construction of a furnace capable of producing 30 tons a day. It is expected that this furnace will be in full working order by the end of the current year. If the manufacture of pig-iron shows a profit—and it should be noted that the present'price of "pig" is £l4 a ton as. compared with £4 7s a ton before the war—the Company will.no doubt procure and set up additional plant fiteed for turning out steel as wsll as iron. -15,000 fully paid-up shares in the capital of the Company are to be issued to Messrs. George Lomas and Duncan McAllum as trustees for the promoters of the Company, namely George Fraser, Charles Goodson, Francis J. V. Wilson, John Ambrose Heskett, Robert James Deare, George Lomas, John Leggo, George Lee, and Duncan McAllum. The consideration for the issue of these shares is the purchase by the promoters and the delivery by them to the Company of the blast furnace, plant and equipment for the production of pig-iron at present owned by the New Zealand Iron Ore Smelting and Manufacturing Company, Limited. 4,500 fuMy paid-up shafes are to be issued to the above-nam-ed promoters in consideration of moneys expended and services rendered by them in and about the promotion of the Company. 10,500 fully paid-up shares are to be issued to the Onakaka Syndicate, that is to say, to Robert Donald Douglas McLean, Thomas A. Turnbull, Mason Chambers, John Chambers, Wilfrid Cotton Sproule, and Alexander Bulwer Campbell in consideration of an underlease to the Company for a term of fifty-five years of the Syndicate's property at Onakaka, DIRECTORS. The number of shares fixed by the Articles of Association as the qualification of a Director is 100. Such shares may be either contributing shares or shares issued as fully paid-up. The Articles of Association provide that the Directors' remuneration shall be determined from time to time at a General Meeting of the Company. A Director may enter into business or make contracts with the Company and receive and retain profits in respect thereof, and the Directors may appoint a Managing Director or Directors, and fix his or their remuneration- No director shall vote on any matter on. which he is personally interested otherwise than as an ordinary member of the Company. One third of the Directors will from time to time be nominated and chosen by the Onakaka Syndicate. MINIMUM SUBSCRIPTION. The minimum subscription on which the Directors may proceed to allotment has been fixed at £IO,OOO. PRELIMINARY EXPENSES. It is estimated that the-preliminary expenses to be incurred in or about the flotation of the Company will not exceed £3OO, exclusive of Brokerage. APPLICATIONS FOR SHARES. Applications for shares should be made upon the form accompanying this Prospectus,' and may be sent to the Secretary, Brokers, or to Any Branch of the Union Bank of Australia, Limited, together with the amount payable on application according to the number of shares applied for in each case. If no allotment is made the deposit will be returned in full, and if the number of shares allotted on any application is less than the number applied for, the balance of the application money will be applied in reduction of the allottee's liability on the shares actually allotted to him. No application for less than 50 shares will be received or considered. EXTRACTS FROM PROFESSOR P. MARSHALL'S REPORIT. The samples show that the ore throughout is of high grade, and of ybjy uaiffflyu value. Even on fa estrems eastern margin the ore is of good quality thoug'i of «, Joiner grade. Fe2 03 gl.oß 63.84 Mn O 0.89 0.75 Ti 02 0.35 0.72 Al2 03 193 3.80 Ca O 0.35 . 0.25 Mg O 0.10 0.15 Si 02 4,90 19 20 P2 05 0.30 0.19 s 03 0.80 0.60 H2 0 und organic matter 9.85 10,90 From this it is calculated that in the two samples, the pereentaga of iron is 56.75 and 44.69. Phosphorus 0.17 and 0.08, Sulphur 032 and .24. , Limestone for fluxing can be obtained in large quantities immediately adjacent to the iron ore. CONDITIONS AFFECTIKG MINING. Since the ore is exposed on the west of the ridge it can be won by ordinary quarrying methods. It breaks readily and quarries out with remarkable ease, and if the ore is worked iii benehes, a minimum of expense will be incurred. _ The occurrence of ore at the west of the hill will greatly reduce the expense of transport, for if transported by aerial tramlines gravitation will supply the motive power as far as the furnace site. Assuming that 60 per cent of the pig iron trade can be secured at first the estimated cost of production upon average production of twenty tons per day is as follows:-- £ s. d. Interest, at 5 per cent 011 l! 1 ton of charcoal, at £2 per ton 2 0 0 Upkeep, £2IOO per year 0 6 0 2 tons of iron ore, at 6s per ton 0 12 0 Lease, £IOSO per year o 3 0 lOcwt limestone, at 0s per ton 0 3 0 Incidentals, £525 per year O 1 IS Labor and power maintenance (based upon actual Freight to consumers' "port «... 1 5 0 practice at New Plymouth) 1 0 0 Unforseen expenses; £7OO ' 0 2 0 Overhead expenses, £1760 per year v. 0 5 0 Depreciation, £IOSO per year 0 3 0 !£6 12 0 a rpmiwl.mnlt n M, P n C - e of f g . h '? n is a .™ und £U per ton, with a tendency to increase in price. I contend that even with InrTZ H, P «? p,g lron W1 " never CMne , beloW , £l ° P er ton ' h ™ c ' e « on 'y takes a novice in mathematics to worK out wnat the profits are, assuming an annual production of 7000 tons. a Ver : V ll berft 1 1 ° ne ' a . nd eontra ? ts can be let for the supply of raw material at the above figures, so the only chance of error in the above estimate is the production not totalling twenty tons per dav. i'liis can bp nf e .\ m ?A r^ ee tO , h f ve a t ma^ mum P roduction :>f thirty tons per day. As' I have said before, the variety of ore lends itself to the production of soft iron, as it is a known practice that low ferrous and high ferric ores tend towards low combined ani high trra&fcite iron with an averaig Bilicon content