The Hawaiian gazette., 1916-10-24
MORE CAPITAL FOR
ENGELS COPPER
Shareholders Asked To Subscribe
Cash To Build Unit Of New
Min -

A special meeting Of the sharehold'
ers Of Engels Copper Company has
been called at Room 393 Mills Build,
ing, San Francisco, on Monday Noyem.
Der 81, to consider and vote upon the
iirector = recommendation to increase
he capital stock. The company Is now
capitalized at 1880, 900. The direc.
Iors have recommended that an add.
.ional 100000 of stock be issued.
Manager Elmer z. Paxton in letter
to the stockholders under date Of De.
tobeF 7 gives the reasons why more
,apital is to be required, as follows,
"Since my report of September ],
the showing in the Superior Mine has
been exceedingly satisfactory. The
main tunnel has been driven about 800
feet, prosecuting the general strike of
the ore, and stiIl in the ore body. The
last 100 feet is in good bornitc ore,
sixty feet of which is very high grade,
averaging probably ten per cent cop.
per. The diamond drill work on the
PIPER group is also showing good re.
Jults, an entirely new large body of
ire having been disclosed for over 200
feet. s 49,
TO Build New MIL
"Following recent visit TO the
property, the directors have decided to
,egin the erection of the large mill re'
TERED to in my last report by install.
ng the first 5O0ton unit thereof as
Don as practicable. The best modern
'ractise in large mills is to build in
rnits of about 500 tons each, which
provides fiexibility &" in operation and
permits increase of capacity by adding
more units as the development Of the
nine may justify. wy
HPlans for the new mill are now be.
ing made, and orders for the necessary
machinery will be placed in the near
future, but it will be, several months
before it can be shipped, owing to the
;ongested condition Of the eastern fac
sories. In the meantime the develop
nent of the Superior Mine will be
ushed, as il will require at least
;welve months hard work to open the
nine so that 500 tons per day can be
lrawn therefrOm economically, But
70 the No. 8 tunnel on the Engels
group will be completed within the
text six months the ore supply for the
lew mill can be supplemented from the
PIPER mine, If necessary. We will, of
'ourss, continue to run our present mill
at full capacity, the plan being eventu.
lily to concentrate all milling opera
lions at the Lower Camp after the first
one or two units are in operation.
"The first mill unit, together with
The necessary camp equipment, water
uPply, land for tailings, assay Office,
lew mining machinery, etc, will cost
tbout $50, 900. The cost of additional
units will be less proportionately,. as
he camps, water supply, etc, will
iave been provided"
mares Pro Rata At Par
If this increase in capitalization IL
authorized, 10000 shares will be
'fered, pro rata at par to the present
shareholders. The total amount sold
will thus be about ten per cent Of the
PRESENT capitalization. The remaining
1850, 900 in stock will be held in
treasury to be sold when necessary to
provide further additions to the equip.
nent. Payment in full for the new
'tock must be made on or before Janu,
Try 20, 1917. -
The proposed issue is not a stock
dividend as has been enormously stated
The money derived from the sale OF
the stock Is to be used for building the
first unit Of new mill.
Earnings and Dividends
In his letter Mr.. Paxton further SAYS
hat, "it is expected that in the mean
ime the earnings from the present mil
will be sufficient to complete the In
lian Valley Railroad, carry on exten
i've mine development, and maintain
he present rate of dividend during
1917, even If there should be a mate
ial decline in the price of copper
When the proposed mill addition is com
Ileted, the earnings will be fully
doubled, and should insure very sat
isfactOry dividend at average price Of
i the metal
| Formal offer of the new shares viii
be made as soon as the issue is au
shorized by the stockholders and ais
by the commissioner of corporations o.
California, the purpose of this com
nunieation being to notify the stock
holders of the proposed allotment al
Tar in advance as possible.