Southwest-sentinel. [volume] (Silver City, N.M.) 1883-189?, 1895-10-22

h~Hrqunhola Gold Mining CoMpauy.-
Pending The issue OF tho annual report
and accounts, The directors have sent to
tho siockholdors q circular detailing cor.
tnin propositions now before them rolo-
tive 10 The acquisition Of other proper
ties. Tho Harquahala mines have been
exhausted add future operations there
viii be confined to the treatment by cy-
anide Of the large stock Of tailings
which it is expected will result ~ 90 az.
Rregnto net profit OF about $4,000 in the
next 10 months. In addition 70 this the
company bad on September 1st cash and
LIQUID assets e. about e65.O0O apart from
the mining machinery and plant which,
however, is not Of much value unless
utilized 10 the New Mexico property q
der consideration. Mr.. Henry Bratno
Der, q Of the engineers who originally
reported on the Harqushala mines. has
offered to hand over to the company on
the terms on vhiuh be acquired Il 90 op-
tion 70 purchase two leases, a~Rgregating
about u acres on the Hannan's gold
field, Western Australia. which contains
according TO the directors, an extension
Of the Humans Reward lode. The op-
ton expires Cd October 18th. and the
price lie E,400. Captain Vawdroy re-
ported iavorablY on this property.
The directors have also had under
their consideration a property known as
the Bell 4 Stevens group Of mines 81
Pinos Altos, New Mexico, which had
been favorably reported upon by Measrs.
George W. Warning, in 1893, Arthur L.
Pearse IN 1894, j. r. Blandy in 1896
These reports we're submitted to Mr.
Raymond, who was induced by them to
visit and examine the mines aud to CON
~sequently cable a favorable report to the
board and recommend their immediate
acquisition. Mr.. Raymond estimates
there are in sight and Immediately avail
able reserves OF ore from which a net
profit Of 100000 may be anticipated.
The great drawback hitherto to the c o
nomical working Of the property has
been the want of water; this difficulty
can be overcome by the introduction Of
water hom a supply that exists 6 miles
away. Mr.. Raymond has secured an
option over tho necessary water rights
and estimates the cost Of bringing in
the water, together with an increase OF
stamps and other necessary improve
ments, at $4,000. Upon the completion
Of these improvements he estimates
that a monthly net profit Of $4,000 to
$4,000 may be anticipated. Mr.. Ray
mond, in his report, lays stress on the
fact that nearly, If not all, the plant ma
chinery at Harquahala could be utilized
for these mines. In order to confirm
Mr.. Raymond's report the board have
arranged with MIR. @. A. Nelson, the
manager Of the Elkhorn NINE, Mon to ex-
anime the property on their behalf, and
they are now awaiting his cabled report
thereon. The purchase price OF the
property is s165,O 900, one-half payable in
October, the balance in December. The
directors have probably sufficient funds
at their disposal to purchase, develop
the Western Australian property, but tc
purchase and work the New Mexico
property also further capital to the ex-
tent OF at least 10000 must be forth
coming, and the directors believe thai
the best method Of raising this amount
viii be by a reconstruction OF the com
pany on the following lines:
The present company to be l~iquidated.
A new company to be formed with 1
capital Of e150,OOO in 10000 shares OF
91. The new company to purchase from
the old the whole Of their assets for co.
600 fully paid up shares, which will per
NIT Of an allotment OF one fully pait
share in the Dew company for every five
shares now held, and q balance OF 1000
shares to cover cost OF liquidation. etc,
$4,000. The new company to offer fol
subscription to the present holders il
the first instance 10000 shares or eco,
loco, leaving a balance for future issue 0
10000 shares, $4,000; total el5O,OOO.
Should This proposition be carried on
the working capital OF 100000 20 pro
vided, together with the cash and liqui'
assets, say el3,OOO, taken oyer from tn.
old company, would be disposed Of a
follows; Acquisition OF the Bell & Ste
!. vsns mine, say e34.O0O, machinery an
: improvements on same e16,OO0 leaving
balance for working capital and purchas
and development Of the West Australia
property Of; Balance OF fresh capita.
e10,OOO; cash and liquid sssets from Of
company, $4,000; a total Of f23.OO0-
There would also remain an unissue
balance Of 10000 shares as stated above
which would be available for the furthe
development and equipment Of the Aus
tralian property and the acquisition O
other claims adjoining the Bell & Ste
vens property, which latter purchas
/, may hereafter be considered desirable
These assets would CONSIST Of; Asset
and tailinRs taken over from the oil
. company; Bell & Stevens property an
! proposed improvements; plant and ma
chinery at Harquahala, not valued bu
can be removed to, aud viii be a yalul
bio asset when erected at Bell & Ste
vons; Greniell leases, West Australia
J. not valued but Of considerable and iu
mediate market value.
The Board OF Directors will not pr
q coed with the reorganization until Al
. MolsoD's report has been received az
l. ,o,.id,~,d .,ti.f,ctory